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Union Cabinet approves ordinance to create 'One India, One Agriculture Market'

The ordinance will remove restrictions on the sale of farm goods and enable their farmers to sell produce outside APMC.

Jun 4, 2020 11:21 IST
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The Union Cabinet on June 3, 2020 approved an ordinance that will pave the way for the creation of 'One India, One Agriculture Market'. The cabinet was chaired by Prime Minister Narendra Modi.

The ordinance is titled Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020. It aims to set up an ecosystem where farmers and traders both have the freedom of choice of sale and purchase of agricultural produce. 

The Cabinet decision was announced by Union Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar.

Key Highlights 

•  The ordinance will remove restrictions on the sale of farm goods and enable their farmers to sell produce outside APMC telectronic platforms without incurring taxes.

•  Generally, there are restrictions on farmers in selling their produce outside the notified APMC market yards. The farmers can only sell their produce to the registered licensees of the state governments.

•  There also exist barriers in the free-flow of agricultural produce between various states owing to the prevalence of various APMC legislation enacted by the state governments.

•  The ordinance will remove the existing barriers by promoting barrier-free trade and commerce within the states outside the physical premises of the markets notified under the state Agricultural Produce Marketing legislations.

•  The ordinance aims to provide farmers with additional trading opportunities outside the APMC market yards to help them get the remunerative prices due to additional competition. This will supplement the existing Minimum Support Price procurement system that is providing stable income to farmers.

Significance 

The ordinance is a historic step that will work to unlock the vastly regulated agriculture markets in the nation. According to the Agriculture Ministry, it will certainly pave the way towards creating 'One India, One Agriculture Market'.

 

Benefits

The ordinance will help open more choices for the farmers, reduce marketing costs and help them in getting better prices. A separate dispute resolution mechanism will also be set up for the farmers.

Background

According to the Agriculture Ministry, India has around 14 crore farmers and 85 percent of them do not get remunerative prices for their produce, but the agricultural reform will enable them to get better prices.

The ordinance is a part of the Rs 20 lakh crore Atmanirbhar Bharat economic package which was announced earlier by Prime Minister Narendra Modi to assist those impacted in different areas by the COVID-19 pandemic.

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