New Delhi: The Rajya Sabha on Sunday (September 20, 2020) passed the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020, which Prime Minister Narendra Modi thinks will add impetus to efforts to double the income of farmers and ensure greater prosperity for them.


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Hours after the bill was passed by the upper house of the Parliament, PM Modi took to Twitter and said that it's a watershed moment in the history of Indian agriculture.


"Congratulations to our hardworking farmers on the passage of key bills in Parliament, which will ensure a complete transformation of the agriculture sector as well as empower crores of farmers," said PM Modi.



He added, "For decades, the Indian farmer was bound by various constraints and bullied by middlemen. The bills passed by Parliament liberate the farmers from such adversities. These bills will add impetus to the efforts to double the income of farmers and ensure greater prosperity for them."



"Our agriculture sector is in desperate need of latest technology that assists the industrious farmers. Now, with the passage of the bills, our farmers will have easier access to futuristic technology that will boost production and yield better results. This is a welcome step," stated Prime Minister.



He also expressed, "I said it earlier and I say it once again: System of MSP will remain. Government procurement will continue. We are here to serve our farmers. We will do everything possible to support them and ensure a better life for their coming generations."
 



Earlier in the day, the bills were cleared amid mayhem in Rajya Sabha with several MPs taking to the well of the House and raising anti-government slogans.


The bills were moved in Rajya Sabha by Union Minister of Agriculture and Farmer Welfare Narendra Singh Tomar who said that the Government under PM Modi has taken several landmark decisions in last six years to ensure that farmers get remunerative prices for their produce, and for raising farmers’ incomes and livelihood status.

The Union Agriculture Minister said that full protection has been ensured to farmers in these legislations.
 


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In the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, the Centre stated the following provisions:

1. The new legislation will create an ecosystem where the farmers and traders will enjoy the freedom of choice of sale and purchase of agri-produce.


 


2. 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.


3. The farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs.


4. The Bill also proposes electronic trading in transaction platform for ensuring a seamless trade electronically.


5. In addition to mandis, freedom to do trading at farmgate, cold storage, warehouse, processing units etc.

6. Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.

On the other hand, the Centre mentioned the following provisions in the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020:

1. The new legislation will empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field. Price assurance to farmers even before sowing of crops. In case of higher market price, farmers will be entitled to this price over and above the minimum price.


2. It will transfer the risk of market unpredictability from the farmer to the sponsor. Due to prior price determination, farmers will be shielded from the rise and fall of market prices.


3. It will also enable the farmer to access modern technology, better seed and other inputs.

4. It will reduce the cost of marketing and improve the income of farmers.

5. Effective dispute resolution mechanism has been provided for with clear timelines for redressal.


6. Impetus to research and new technology in the agriculture sector.