Page 31 - Banking Finance December 2020

ARTICLE

FARM

AMENDMENT

BILL 2020 AND

ITS PROS AND

CONS.

T here are three bills which are passed by In addition to this, bill will provide a facilitative framework

Government. First one Farmers' Produce Trade
for electronic trading.
and Commerce (Promotion and Facilitation) Bill,
2020. For better communication it is the best
to refer to this Bill as "the APMC Bypass Bill 2020" since that Contrary to these facilities State governments have the
apprehensions to loose mandi fees as there is no compulsion
is the intent. The purpose of this bill is to create an for farmers to sell in mandi. Also they have anxiety about
ecosystem where farmers and traders enjoy the freedom mandi agents who will loose their jobs. The apprehensions
to sell and purchase farm produce outside registered reached at the level of loosing MSP system. As they consider
'mandis' under states' APMCs. that MSP is possible till APMC (MANDI) exist. In this way
the fate of E-NAM is also their concern. Of course E-NAM
Moreover this will promote barrier-free inter-state and requires physical mandi structure but it will not be a
intra-state trade of farmers' produce. Along with that this particular one.
bill will reduce marketing/transportation costs and help
farmers in getting better prices. The Central government has decided to throw open the
doors of national markets for farmers, allowing them to sell
their produce ''wherever'' and to ''whoever'' without any
About the author restrictions on selling only to licensees in Agricultural Produce

Rajeev Kumar Market Committees (APMCs) or mandis.
M.Sc. (Agri.) - Centre-in-charge
Under the provisions of the APMC Act, farmers are required
Assistant General Manager
to sell their produce only in designated mandis at prices that
Union Bank of India
Staff Training Centre, Lucknow are often regulated and many times lower than prevailing

BANKING FINANCE | DECEMBER | 2020 | 31