Farm Bills 2020

#2nd bill

- The Farners (Empowerment and Protection) Agreement on Price

Assurance and Farm Services Act, 2020.

- The new legislation will empower farmers for engaging with

Processors, Wholesellers, Aggregators, Large Retailers, Exporters,etc.

- Price Assurance to farmers even before sowing crop. In case of higher

market price, farmers will be entitled to this price over and above MSP.

- Farmers will be shielded from the rise and fall of the markets.

- it will also enable thr farmers to access modern technology, bretter

seeds and other inputs.

it will also reduce cost of marketing and improve income of farmers.

CLARIFICATION :-

- The farmers will have a full power in the contract to fix sales price for
thier produce.

- 10000 Farmer Producer Organisation are formed throughout the

country.

- These FPOs will bring together small farmers and work to ensure
remuneration pricing for farm produce.

- After signing the contract, the farmers will not have seek out traders.
the purchasing consumer will simply pickup the produce from the farm.
- In case of dispute,the farmers can approach  Sub-Divisoinal
Magistrate as well as Civil Court.

Dhrishti IAS
 Agreement :-
- Farmers are allowed to involve in a Agreement.
- There will be 2 Parties involve in a Agreement :-
1] Farmers,
2] Sponsor.
- Agreement can be on Two Things
1] Farm Produce,
2] Farm Services.

 Period :-
- The Agreement can be of minimum one crop season to
maximum 5 years.

 Model Contracts :-
- The center government may provide Model Contracts or provide
proper guidelines for the contract.

 Price Fixing Mechanism :-

 - There are two ways to fix a price of a particular farm produce :-

1] Pre-Fix :- Both Parties (Farmers and Sponsor) can agree

on a specific price.

2] Pre-Fix + Flexibility :- Minimum Assured Price +

Bonus/Premium.

 Delivery, Payment Mechanism :-

- All Payment will be done on the day of delivery.
- If there is a procedural problem in making Payment, then the
payment should be done within 3 days of the delivery.
- And the Sponsor has to give the date of Payment on written on
the day of delivery.

 Farmer's Land :-
- The Agricultural Land, Cultivable Land of Farmers cannot be
include as any Condition in the Contract/Agreement. (It will
automatically declared Null and Void.)
- The Sponsors cannot construct any Permanent Structure on
Farmer's Land (Except on One Condition, If both parties have
agreed on it.)
- But it will be the responsibility of the Sponsor to remove that
Permanent Structure on his expense once the contract is over. If the
Sponsor does not do so, then the structure will be declared as
Farmer's Property.
 Registration :-
- Every state will have power/right to make an Authority to
Register such Farming Contracts, maintain its Legitimacy.
  Force Majeure :-
- If there is any Natural Calamity or Act of God, because of which
one party or both parties involved in a contract are unable to meet
the Contract Demands, no one will get punished for it.

 Dispute Settlement :-
- In case of dispute, the farmers can approach  Sub-Divisional
Magistrate as well as Civil Court.
- Conciliation Board > SDM > Collector.

 Penalties :-
- If the Sponsor is found Guilty in a dispute, then he can be Charge
maximum 1.5x times the amount of Contract as a Penalty.
- And If the Farmer is found Guilty in a dispute, then the Farmer
have to pay only the Amount, the sponsor has spent.

 Merits of this ACT :-

- Like every sector.
- Good Competition , Innovation, Organic Farming etc.
- Change in Crop Pattern.
- Farmers Producer Organization. (Example :- Amul in Gujarat)

 De-Merits of this ACT :-

- Courts. ( Solution :- Fast Track Agricultural Tribunal Courts)
- Market Rate Benefits. (Solution :- Awareness)
- Legal Teams of Corporates. (Solution :- Model Contracts)
- Regulations = Weak (Problem :- Only Pan required to start
Trading.) (Solution :- Regulations to make strong)
- MSP (Minimum Support Price)