Farmers Act 2020

By : Neha Dhyani

Updated : May 20, 2022, 11:33

The central government wanted to reform the agricultural laws prevailing in the country. They brought some model farmer laws in the year 2017 to amend the existing laws. The state governments did not take steps to implement the suggested laws in the existing system.

Farmers Act 2020 - Overview

Finally, the central government formulated three ordinances addressing the changes required in the farmers’ laws by the first week of June 2020. The president also agreed to give assent to the newly formed three farm acts, and the Farmers Act 2020 was official. However, farmers from different states, including Punjab and Haryana, protested to establish their opposition to the new legislation.

According to the government of India, the three regulations are intended to alter how agri-products are publicised, traded, and stowed across the country.

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Three Laws Farmers Act 2020

According to India's federal government, the farmers' trades suffer from syndicated issues in the APMCs. This situation forces the farmers to sell their produce at a low price. As a result, the government wanted to make it legal for farmers to sell their harvests outside of the APMC markets without dealing with monopolisation.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 was administered to allow farmers to sell their agri-products outside the APMC market. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 enabled farmers to legally form contracts with various companies and generate their own products for that company on that contract basis.

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The Essential Commodities (Amendment) Act, 2020 eliminates cereals, pulses, oilseeds, edible oils, onions, and potatoes from the essential commodities list, liberating its production range, depository, direction trend in the market, and distribution of these food commodities.

Eliminating misconceptions and fears of farmers might help the government to implement the Farmers Act 2020 in the agricultural sector. However, the government should also concentrate on listening to farmers' outlooks and requirements.

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FAQs on Farmers Act 2020

Q1. What is the Farmers Act 2020?

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 [Farmers Act 2020] authorises farmers and growers to market their harvested crops outside announced APMC mandis without paying any taxes. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020, boosts the aspects of contract and agreement farming and immediate marketing without facing any middleman issues. The Essential Commodities (Amendment) Bill, 2020, liberates the production, depository, movement, and market of cereals, pulses, edible oils, and onions by eradicating them from the essential commodities list.

Q2. What are the three bills that make up the Farmers Act 2020?

The three laws that contribute to constructing the Farmers Act 2020 include -

  • The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
  • The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
  • The Essential Commodities (Amendment) Act (ECA), 2020

Q3. Why are the farmers protesting against the Farmers Act 2020?

As the regulations of the Farmers Act 2020 specify that the state governments are not eligible anymore to charge levies or market fees for trading outside the APMC markets, it has made farmers worried about abolishing the mandi system. They fear that the new regulations will contribute to the growth of corporates while eliminating the traditional mandi system. This fear of uncertainty has led farmers to protest against the Farmers Act 2020.

Q4. Why was the Indian government in a rush to enact the Farmers Act 2020?

The concepts of APMC and MSP were implemented in the Indian agriculture sector during the green revolutions to prevent the period of severe food scarcity. According to the central government of India, the APMCs have become the home of syndicated issues that deliberately compel farmers to sell their products at a very low price. Hence, the government wanted to legally allow the farmers to be able to market their harvests outside of the APMC markets without facing any monopolisation issues.