Context:

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 is an act of the Indian Government, collectively passed as part of the 2020 Farm Bills.

About the Act:

The act permits intra-state and inter-state trade of farmers’ produce beyond the physical premises of Agricultural Produce Market Committee (APMC) market yards (mandis) and other markets notified under state APMC Acts.

Provisions under the Act:

• Trading outside Mandis: Agricultural trade in India could only be conducted in APMC market yards (mandis). This Act, however, allows trading in “outside trade areas”—such as farm gates, factory premises, warehouses, silos, and cold storages.
• Free of charges: It prohibits state governments from levying any market fee or cess on farmers, traders, and electronic trading platforms for trading the produce of farmers in such areas.
• Competitive trading: The Act seeks to facilitate lucrative prices for farmers through competitive alternative trading channels to promote barrier-free inter-state and intra-state trade of agriculture goods.
• Electronic trading: It also permits the electronic trading of farmers’ produce in the specified trade area, facilitating direct and online buying & selling of such products through electronic devices and the internet.
• Barrier free trading: It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.
• Lesser intermediaries: Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.