Current Affairs Brain Booster for UPSC & State PCS Examination (Topic: Agri-Reforms)

Current Affairs Brain Booster for UPSC & State PCS Examination

Agri-Reforms

Recently, a report released by the Ministry of Finance stated that in the financial year 2020-21, looking at the possibility of a better monsoon, agricultural sector may play an important role to revive the Indian economy affected by the Corona virus.

In June 2020, the central government has introduced major agricultural market reforms through three ordinances: The Essential Commodities (Amendment) Ordinance 2020, The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, and The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020.
Since the inauguration of the Indian constitution on January 26, 1950, these three inter-linked ordinances constitute the most concerted entry of the Centre into the sphere of agriculture, which was designated a state subject in the constitution.

The Ordinance seeks to provide for barrier-free trade of farmers’ produce outside the markets notified under the various state agricultural produce market laws (state APMC Acts).
The Ordinance will prevail over state APMC Acts.
The Ordinance will allow intra-state and inter-state trade of farmers’ produce outside: (i) the physical premises of market yards run by market committees formed under the state APMC Acts and (ii) other markets notified under the state APMC acts such as private market yards and market sub-yards, direct marketing collection centres, and private farmer-consumer market yards.
A farmer is defined as a person engaged in the production of farmers’ produce by self or by hired labour. A farmer producer organisation means an association or group of farmers which is: (i) registered under the law, or (ii) promoted under a scheme of the central or state government.

The Ordinance will provide a framework for the protection and empowerment of farmers with reference to the sale and purchase of farm products.
The provisions of the Ordinance will override all state APMC laws.
The Ordinance will provide for a farming agreement prior to the production or rearing of any farm produce, aimed at facilitating farmers in selling farm produces to sponsors.
The minimum period of an agreement will be one crop season, or one production cycle of livestock. The maximum period will be five years. For production cycle beyond five years, the maximum period for the agreement will be mutually decided by the farmer and the sponsor.
The price to be paid for the purchase of a farming produce will be mentioned in the agreement. In case of prices subjected to variations, the agreement must include: (i) a guaranteed price to be paid for such produce, and (ii) a clear reference for any additional amount over and above the guaranteed price, including bonus or premium.

There is no specific definition of essential commodities in the Essential Commodity Act. Section 2(A) of the act states that an “essential commodity” means a commodity specified in the “Schedule” of this Act.
The Ordinance provides that the central government may regulate the supply of certain food items including cereals, pulses, potato, onions, edible oilseeds, and oils, only under extraordinary circumstances. These include: (i) war, (ii) famine, (iii) extraordinary price rise and (iv) natural calamity of grave nature.
The Ordinance requires that imposition of any stock limit on certain specified items must be based on price rise. A stock limit may be imposed only if there is: (i) 100% increase in retail price of horticultural produce; and (ii) 50% increase in the retail price of non-perishable agricultural food items.