Press release New farmer laws for agriculture.

New farmer laws for agriculture.

Embassy of India

Press Release

The Government of India has recently enacted two new farm laws for agriculture, and has amended the Essential Commodities Act. The first farm law, Farmers´ Produce Trade and Commerce (Promotion and Facilitation) Act or the FPTC Act, offers farmers the choice to sell their produce within the APMC markets (the existing system for marketing agricultural produce in states) or outside them; through a physical market or on an electronic platform; and directly at farm or anywhere else.

The second law, the Farmers´ Empowerment and Protection Agreement on Price Assurance and Farm Services Act – or the Agreement on Price Assurance and Farm Services (APAFS) – is a simplified and an improved version of the Contract Farming Act that has already been adopted by 20 states of the country. The Act removes the complicated system of registration/licence, deposits, and various other compliances required for contract farming in various states. It intends to insulate interested farmers, especially small farmers, against the market and price risks so they can go for the cultivation of high-value crops without worrying about the market and low prices in the harvest season.

The third Act involves modification in the Essential Commodities Act to lay down transparent criteria in terms of price triggers behind Government decisions to regulate the supply of essential commodities under extraordinary circumstances. These measures fulfil the longstanding demand for reforms in the agriculture sector in India. They are aimed at creation of ´One Nation, One Agriculture Market´. They will also enable the farmers to connect to the global markets like the rest of the country.

The reforms are expected to boost investment in the agriculture sector, through better backward linkages, assured prices and contracts for farm services. They will incentivize private sector investments across the entire cold chain, reducing post harvest losses and ensuring better prices for farmers.

December 02, 2020