Brain Booster for UPSC & State PCS Examination (Topic: The Farmers' Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020)

Brain Booster for UPSC & State PCS Examination

The Farmers' Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 was promulgated on June 5, 2020.
It 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 allows intra-state and inter-state trade of farmers' produce outside: (The physical premises of market yards run by market committees formed under the state APMC Acts; and ( Other markets notified under the state APMC acts such as private market yards and market sub-yards, direct marketing collection centres, and private farmerconsumer market yards.
Such trade can be conducted in any place of production, collection, and aggregation of farmers' produce including: (i) farm gates, (ii) factory premises, (iii) warehouses, (iv) silos, and (v) cold storages.
Farmers' produce means food items including cereals such as wheat and rice, oilseeds, oils, vegetables, fruits, spice, and sugarcane. It also includes (i) products of poultry, piggery, goatery, fishery, dairy, (ii) raw cotton and jute, and (iii) cattle fodder.

The Ordinance allows farmers, farm producer organisations as well as anyone who buys farmers' produce for: (i) wholesale trade, (ii) retail, (iii) end-use, (iv) value addition, (v) processing, (vi) manufacturing, (vii) export, or (viii) consumption, to engage in such intra-state or inter-state trade.
A person transacting with a farmer will be required to make payments to the farmer on the same day, or within three working days in certain conditions, for any transaction of scheduled farmers' produce.
The Ordinance prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for any trade under the Ordinance.

The Ordinance permits the electronic trading of farmers' produce in the specified trade area. An electronic trading and transaction platform may be set up to facilitate the direct and online buying and selling of farmers' produce through electronic devices and internet for physical delivery of the farmers' produce.
The following entities may establish and operate such platforms: (i) companies, partnership firms, or registered societies, having permanent account number under the Income Tax Act or any other document notified by the central government, and (ii) farmer producer organisation or agricultural cooperative society.

The parties involved in a trade-related dispute may apply to the Sub-Divisional Magistrate for relief through conciliation.
The Magistrate will appoint a Conciliation Board and refer the dispute to the Board.
If the dispute remains unresolved after 30 days, the parties may approach the Magistrate for settlement of the dispute.
The parties will have a right to appeal against the decisions of the Magistrate before an Appellate Authority (Collector or Additional Collector nominated by the Collector).

The Ordinance will provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers' produce which facilitates remunerative prices through competitive alternative trading channels.
It will promote efficient, transparent and barrier-free inter–State and intra-State trade and commerce of farmers' produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations.
Besides, the Ordinance will provide a facilitative framework for electronic trading and matters connected therewith or incidental thereto.