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Ministry of Agriculture
Three bills aimed at transformation of agriculture and raising farmers
Legislations will enable barrier-free trade in agricultural produce and empower farmers to
engage with investors of their choice - Union Minister of Agriculture & Farmers’ Welfare Shri
Narendra Singh Tomar
Three bills aimed at transformation of agriculture in the country and raising farmers’ income
were introduced in Lok Sabha today to replace ordinances promulgated on 5th June 2020–
1. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
2. The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm
Services Bill, 2020
3. The Essential Commodities (Amendment) Bill, 2020
The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 seeks to
provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of
choice relating to sale and purchase of farmers' produce which facilitates remunerative prices
through competitive alternative trading channels to promote efficient, transparent and barrier-
free inter-State and intra-State trade and commerce of farmers' produce outside physical
premises of markets or deemed markets notified under various State agricultural produce market
legislations; to provide a facilitative framework for electronic trading and for matters connected
therewith or incidental thereto.
Background
✓ Farmers in India suffered from various restrictions in marketing their produce. There were
restrictions for farmers in selling agri-produce outside the notified APMC market yards.
✓ The farmers were also restricted to sell the produce only to registered licensees of the
State Governments.
✓ Further, Barriers existed in free flow of agriculture produce between various States owing
to the prevalence of various APMC legislations enacted by the State Governments.
✓ This legislation is a historic-step in unlocking the vastly regulated agriculture markets in
the country.
✓ It will open more choices for the farmer, reduce marketing costs for the farmers and help
them in getting better prices. It will also help farmers of regions with surplus produce to
get better prices and consumers of regions with shortages, lower prices.
Benefits
✓ The new legislation will create an ecosystem where the farmers and traders will enjoy
freedom of choice of sale and purchase of agri-produce.
✓ 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. This is a historic-step in unlocking the vastly regulated agriculture markets in
the country.
✓ It will open more choices for the farmer, reduce marketing costs for the farmers and help
them in getting better prices.
✓ It will also help farmers of regions with surplus produce to get better prices and
consumers of regions with shortages, lower prices.
✓ The Bill also proposes an electronic trading in transaction platform for ensuring a
seamless trade electronically.
✓ The farmers will not be charged any cess or levy for sale of their produce under this Act.
Further there will be a separate dispute resolution mechanism for the farmers.
✓ The Bill basically aims at creating additional trading opportunities outside the APMC
market yards to help farmers get remunerative prices due to additional competition. This
will supplement the existing MSP procurement system which is providing stable income
to farmers.
✓ It will certainly pave the way for creating One India, One Agriculture Market and will lay
the foundation for ensuring golden harvests for our hard working farmers.
The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services
Bill, 2020 seeks to provide for a national framework on farming agreements that protects and
empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or
large retailers for farm services and sale of future farming produce at a mutually agreed
remunerative price framework in a fair and transparent manner and for matters connected
therewith or incidental thereto.
Background
✓ Indian agriculture is characterized by fragmentation due to small holding sizes and has
certain weaknesses such as weather dependence, production uncertainties and market
unpredictability.
✓ This makes agriculture risky and inefficient in respect of both input & output
management. This legislation will transfer the risk of market unpredictability from the
farmer to the sponsor and also enable the farmer to access modern technology and better
inputs.
✓ It will reduce cost of marketing and improve income of farmers.
✓ Farmers will engage in direct marketing thereby eliminating intermediaries resulting in
full realization of price. Farmers have been provided adequate protection.
✓ Effective dispute resolution mechanism has been provided for with clear time lines for
redressal.
Benefits
✓ The new legislation will empower farmers for engaging with processors, wholesalers,
aggregators, wholesalers, large retailers, exporters etc., on a level playing field without
any fear of exploitation. It will transfer the risk of market unpredictability from the farmer
to the sponsor and also enable the farmer to access modern technology and better inputs.
It will reduce cost of marketing and improve income of farmers.
✓ This legislation will act as a catalyst to attract private sector investment for building supply
chains for supply of Indian farm produce to national and global markets, and in
agricultural infrastructure. Farmers will get access to technology and advice for high value
agriculture and get ready market for such produce.
The Essential Commodities (Amendment) Bill, 2020 seeks to remove commodities like cereals,
pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities. This will
remove fears of private investors of excessive regulatory interference in their business
operations. The freedom to produce, hold, move, distribute and supply will lead to harnessing of
economies of scale and attract private sector/foreign direct investment into agriculture sector.
Background
✓ While India has become surplus in most agri-commodities, farmers have been unable to
get better prices due to lack of investment in cold storage, warehouses, processing and
export as the entrepreneurial spirit gets dampened due to Essential Commodities Act.
✓ Farmers suffer huge losses when there are bumper harvests, especially of perishable
commodities.
✓ The legislation will help drive up investment in cold storages and modernization of food
supply chain. It will help both farmers and consumers while bringing in price stability.
✓ It will create competitive market environment and also prevent wastage of agri -produce
that happens due to lack of storage facilities.
Benefit
The introduction of the afore said new Web Form, the number of procedures has been reduced
to 3 as against 10 earlier and time has also been reduced to 4 days as against 18 days earlier for
starting a Business in the Country.
✓ To generate and regularly update information on Marine Living Resources and their
relationship with the physical environment in the Indian Exclusive Economic Zone (EEZ),
✓ To periodically monitor levels of sea water pollutants for health assessment of coastal
waters of India, to develop shoreline change maps for assessment of coastal erosion due
to natural and anthropogenic activities,
✓ To develop a wide range of state-of-the art ocean observation systems for acquisition of
real-time data from the seas around India,
✓ To generate and disseminate a suite of user-oriented ocean information, advisories,
warnings, data and data products for the benefit of society,
✓ To develop high resolution models for ocean forecast and reanalysis system,
✓ To develop algorithms for validation of satellite data for coastal research and to monitor
changes in the coastal research,
✓ To develop technologies to tap the marine bio resources,
✓ To develop technologies generating freshwater and energy from ocean,
✓ To develop underwater vehicles and technologies,
✓ Establishment of Ballast water treatment facility,
✓ To support operation and maintenance of 5 Research vessels for ocean
survey/monitoring/technology demonstration programmes,
✓ Establishment of state-of-the-art sea front facility to cater to the testing and sea trial
activities of ocean technology,
✓ To carryout exploration of Polymetallic Nodules (MPN) from water depth of 5500 m in
site of 75000 sq.km allotted to India by United Nations in Central Indian Ocean Basin, to
carryout investigations of gas hydrates,
✓ Exploration of polymetallic sulphides near Rodrigues Triple junction in 10000 sq. km of
area allotted to India in International waters by International Seabed Authority/UN and,
✓ Submission of India's claim over continental shelf extending beyond the Exclusive
Economic Zone supported by scientific data, and Topographic survey of EEZ of India.
The Indian Tsunami Early Warning Centre (ITEWC) was established at Indian National Centre
for Ocean Information Services (INCOIS), Hyderabad, an autonomous body under Ministry of
Earth Sciences which continues to provide timely tsunami advisories to stake holders and has
functioned flawlessly since its establishment in October 2007.
✓ The ITEWC is also providing tsunami services to 25 Indian Ocean Countries as part of the
Intergovernmental Oceanographic Commission (IOC) of UNESCO framework.
✓ INCOIS has introduced several innovative concepts in tsunami modeling, mapping of
coastal inundation, Decision Support System, SOPs to meet the emerging challenges and
provide accurate and timely tsunami early warnings.
✓ INCOIS has established a Global Navigation Satellite System (GNSS) & Strong Motion
Accelerometers in Andaman and Nicobar Islands for quick and reliable estimation of
source parameters for near source earthquakes.
✓ In addition, INCOIS has carried out Multi-hazard Vulnerability Mapping (MHVM) along
the mainland of Indian coastland MHVM atlas has been prepared.
✓ In addition to workshops and trainings for disaster managers, ITEWC is also coordinating
with coastal States/UTs to implement Tsunami Ready Programme, a concept introduced
by UNESCO, at community level.
✓ Odisha has implemented the programme in two villages (Venkatraipur and Noliasahi) and
based on the national board recommendation, IOC (UNESCO) recognized these villages as
Tsunami ready communities.
The Environment Ministerial Meeting (EMM) of the G20 countries commenced under the
Presidency of Kingdom of Saudi Arabia. Representing India, Union Environment, Climate Change
and Forest Minister Shri Prakash Javadekar, India has taken significant steps to protect
environment and forest and wildlife as well as combating pollution and climate change.
✓ The efforts made by National Coastal Mission Programme under which government has
taken many steps to protect and sustain coral reefs in the country.
✓ India believes that Equity, Common but differentiated responsibilities, finance and
technology partnerships are key pillars and India is walking the talk on Paris Agreement
and its Climate commitments.
✓ India is taking adequate action to meet Paris Agreement goals and is one of the few
countries compliant with it.
✓ The launch of Global Initiative to reduce Land Degradation and Coral Reef program and
two documents on climate change related to managing emissions and climate change
adaptations under the G20 this year.
Union Minister of State for Environment, Forest and Climate Change, Sh. Babul Supriyo .
✓ Central Pollution Control Board (CPCB) has been doing a remarkable work in terms of
collecting and collating the data related to pollution which is acting as a key policy input
for the government and the concerned agencies to improve air quality.
✓ CPCB has been providing a real time data which is commendable.
✓ The CBCB was established on September 23, 1974 under The Water (Prevention & Control
of Pollution) Act, 1974 as a technical arm of Central Government for environmental
research, monitoring, regulation and enforcement in the country.
✓ Since its inception, CPCB is working tirelessly towards environmental protection in the
country. Some of the pro-active actions of the Central Board include setting sector specific
standards (86); real time surveillance of more than 5,000 industries; river basin studies,
which led to genesis of Ganga Action Plan; multi-city source apportionment studies;
establishing extensive monitoring network and data management for public
dissemination; setting national ambient air quality standards; and fixing water quality
criteria.
✓ CPCB’s actions have been critical in obviating steep environmental degradation expected
of rapid industrial, commercial and population growth.
✓ With increasing environmental challenges and mounting public expectations, CPCB is
working to re-define pollution control technologies and management strategies.
Ministry of Finance
Borrowing of money to meet GST revenue shortfall
As per provision in Sections 7, 8 & 10 of the GST (Compensation to States) Act, 2017, the issue of
pending GST compensation and future course of action to meet the GST compensation shortfall
has been discussed in 41st GST Council meeting on 27.08.2020 in the light of the opinion given
by Ld. Attorney General of India, wherein States were given two options to meet their GST
compensation shortfall for current FY from market borrowing.
✓ However, some States/UTs have suggested Central Government to borrow money from
market and compensate States to meet GST revenue shortfall.
✓ In this regard, it is submitted that Central Government continues to remain engaged with
the States who have not given either of the options, the Minister stated.
The details of the two borrowings options were communicated to the States by the Department
of Expenditure as under: -
Option 1
✓ The shortfall arising out of GST implementation (calculated at Rs. 97,000 crores
approximately) will be borrowed by States through issue of debt under a Special Window
coordinated by the Ministry of Finance.
✓ It will be the endeavour to ensure steady flow of resources similar to the flow under GST
compensation on a bi-monthly basis.
✓ The GOI will endeavour to keep the cost at or close to the G-sec yield, and in the event of
the cost being higher, will bear the margin between G-secs and average of State
Development Loan yields up to 0.5% (50 basis points) through a subsidy.
✓ A special borrowing permission will be given by the GOI under Article 293 for this
amount, over and above any other borrowing ceilings eligible under any other normal or
special permission notified by Department of Expenditure.
✓ In respect of Union Territories (including National Capital Territory), suitable
arrangements to ensure flow of resources under the Special Window to them would be
made by the Government of India
✓ The interest on the borrowing under the Special Window will be paid from the Cess as
and when it arises until the end of the transition period. After the transition period,
principal and interest will also be paid from proceeds of the Cess, by extending the Cess
beyond the transition period for such period as may be required. The State will not be
required to service the debt or to repay it from any other source.
✓ States will also be given permission to borrow the final instalment of 0.5% (originally
intended as a bonus for completing at least three of the four specified reforms) allowed
in para 4 of the Department of Expenditure’s OM F.No. 40(06)/PF-S/2017-18 dated 17-5-
20 (hereinafter referred to as DOE OM) even without meeting the pre-conditions. This
will enable borrowing of approximately Rs. 1 lakh crores in aggregate.
✓ The first instalment of 0.5% unconditional borrowing permission granted vide para 4 of
the DOE OM remains unaffected. The reform-linked tranches specified in paras 5 to 8 of
that OM also remain unaffected.
✓ In modification of para 9 of the DOE OM, States will be able to carry forward unutilised
extra borrowing ceilings given under that OM to the next financial year; the instalments
under para 4 (0.5 unconditional + another 0.5 as per para VII above) can be carried
forward unconditionally; the reform-linked portions can be carried forward if the States
meet the reform criteria within the dates already prescribed for this year.
✓ The borrowing under the Special Window will not be treated as debt of the State for any
norms which may be prescribed by the Finance Commission etc.
✓ The Compensation Cess will be continued after the transition period until such time as all
arrears of compensation for the transition period are paid to the States. The first charge
on the Compensation Cess each year would be the interest payable; the second charge
would be the principal repayment. The remaining arrears of compensation accrued during
the transition period would be paid after the interest and principal are paid.
Option 2
✓ The entire shortfall of Rs 235,000 crores (including the Covid-impact portion) may be
borrowed by States through issue of market debt. The GOI will issue an OM committing
to repayment of principal on such debt from Cess proceeds as per para IV below.
✓ Appropriate enhanced special borrowing permission will be given by the GOI under Article
293 based on the following methodology, in modification of scheme notified earlier under
the DOE OM:
✓ Each state’s borrowing limits for the year will be based on the following calculation: Basic
eligibility (3 % of GSDP) + Amount allowed for shortfall as per Item I above of Option 2+
up to 1% of GSDP (reform-linked as per paras 5 to 8 of DOE OM) Basic eligibility (3% of
GSDP) + 1% of GSDP + up to 1% of GSDP (reformlinked as per paras 5 to 8 of DOE
OM) whichever is higher.
✓ The additional unconditional borrowing limit of 0.5% and the final (bonus) tranche of 0.5%
under para 4 of the DOE OM will not be separately available, being subsumed under the
calculation above.
✓ States will remain eligible for the reform-linked tranches of borrowing under paras 5 to 8
of the DOE OM this year but shall not be eligible to carry them forward. The maximum
amount which can be availed under that OM shall stand reduced to 1% of GSDP instead
of 2% of GSDP.
✓ Visiting Advanced Joint Research (VAJRA) Faculty Scheme: This Scheme is to bring
overseas scientists and academicians including Non-resident Indians (NRI) and Overseas
Citizen of India (OCI) to India to work in public funded Institutions and Universities for a
specific period of time. The scheme offers adjunct / visiting faculty assignments to
overseas scientists including Indian researchers to undertake high quality collaborative
research in cutting edge areas of science and technology with one or more Indian
collaborators.
✓ Ramanujan Fellowship: This Fellowship provides attractive avenues and opportunities to
Indian researchers of high calibre, who are residing abroad, to work in Indian
Institutes/Universities in all areas of Science, Engineering and Medicine. It is directed to
scientists and engineers below the age of 40 years, who want to return to India from
abroad.
✓ Ramalingaswami Re-entry Fellowship: The programme is to encourage scientists (Indian
Nationals) working outside the country, who would like to return to the home country to
pursue their research interests in Life Sciences, Modern Biology, Biotechnology, and other
related areas.
✓ Biomedical Research Career Programme (BRCP): This program provides opportunity to
early, intermediate and senior level researchers to establish their research & academic
career in Basic biomedical or Clinical & Public Health in India. These fellowships are open
to all eligible researchers who wish to relocate or continue to work in India.
✓ Scientists/ Technologists of Indian Origin (STIO) in Indian research Laboratory: There is a
provision to appoint Scientists/ Technologists of Indian Origin (STIO) on a contractual
basis at Council of Scientific and Industrial Research (CSIR) laboratories to nurture a
research field in their area of expertise.
✓ Senior Research Associateship (SRA) (Scientist's Pool Scheme): This scheme is primarily
meant to provide temporary placement to highly qualified Indian scientists, engineers,
technologists, and medical personnel returning from abroad, who are not holding any
employment in India. The Senior Research Associateship is not a regular appointment,
but is a temporary facility to enable the Associate to do research/teaching in India while
looking for a regular position.
Ministry of Science and technology does not keep track or estimates the number of Indian
scientists, who leave India to work in other countries.
✓ However, to avoid brain drain Ministry of Science and Technology is promoting global
level of research through implementation of various competitive schemes / programmes
such as Core Research Grant, Research fellowships such as JC Bose and Swarnajayanti
fellowship etc.
✓ There are some special schemes for young scientists e.g. Start-up Research Grant,
National Postdoctoral Fellowship etc. for making them independent and motivate them
to remain in the country.
✓ Towards gaining global competitiveness Ministry of Science is also connecting Indian
Research with Global research through International bilateral and multilateral S & T
cooperation with about 80 countries and various multilateral organizations/agencies.
NITI Aayog
NITI Aayog and Embassy of the Netherlands sign Statement of Intent
on ‘Decarbonization and Energy Transition Agenda’
NITI Aayog and Embassy of the Netherlands, New Delhi, signed a Statement of Intent (SoI) on
28 September 2020 to support the decarbonization and energy transition agenda for
accommodating cleaner and more energy.
✓ The SoI was signed by NITI Aayog CEO Amitabh Kant and Ambassador of the Netherlands
to India Marten van den Berg. Through this collaboration, NITI Aayog and the Dutch
Embassy seek a strategic partnership to create a platform that enables a comprehensive
collaboration among stakeholders and influencers, including policymakers, industry
bodies, OEMs, private enterprises, and sector experts.
✓ The focus of the partnership is on co-creating innovative technological solutions by
leveraging the expertise of the two entities. This will be achieved through an exchange of
knowledge and collaborative activities.
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