Agriculture and COVID-19

Intro-
 List II entry 14 of Schedule 7 deals with agriculture.
 The government of India has published model State/UT Agricultural Produce and
Livestock Market Act,2017
 48% of the population depends upon agriculture and allied activities for
employment.
 Model Act because the legislative power in relation to agriculture rests with States.
States have enacted their Agriculture Produce Marketing (Regulation) Act known as
APMC Acts in 1960s and 1970s.
 First model Act introduced in 2003 by GOI.
 Model Act of 2017 was also needed because in 2016 National Agriculture market
was established.
 National Agriculture Market (eNAM) is a pan-India electronic trading portal which
networks the existing APMC mandis to create a unified national market for
agricultural commodities. (https://www.enam.gov.in/web/)
 Integration of APMCs across the country through a common online market platform
to facilitate pan-India trade in agriculture commodities, providing better price
discovery through transparent auction process based on quality of produce along
with timely online payment.

Model Act, 2017

 The Model Act of 2017 is divided into 14 chapters.
 To provide restriction free trade transaction of agriculture produce across the
State/UT.
 Short comings were faced by the central government when it started the operation
of Electronic National Agriculture Market (e-NAM) in 2016.
 The enactment encompasses host of reforms that are required in the functioning of
the APMC.
 Salient features of the enactment –
1) Abolition of notified market area.
2) Democratization of market committee
3) Connecting farmers with processors/exporters
4) Creation of private whole sale market yards
5) Enabling declaration of warehouses as market sub -yards
6) Promotion of E- trading
 Section 2 provides various definitions such as of direct marketing (direct wholesale
buying by bulk buyers, exporters, processors outside the principal market) ,
electronic trading, electronic platforms, farmer-consumer market yard, sub market
yard (warehouses)
 Section 3 provides power to the government to decide the types of products that are
to be regulated under the Act.
 Section 7 establishes different market yards such as principal market yard (like
azadpur subzi mandi in Delhi), sub market yard (warehouses) and private market
yards and electronic trading platforms (E-NAM)
 Section 8 establishes special commodity market yards (example apple market)
  Section 9 allows establishment of Market yard of National importance (like
Sugarcane national importance market can be setup in State of U.P) 30% of the
produce brought in this market needs to come from at least two other states from
the state where it is located.
 Section 11 establishes farmer-consumer market yard for direct retail sale to
consumers. Upper cap on limit to be decided by the government.
 Section 12 allows declaration of warehouses as sub market yard.
 Section 13 allows direct selling by farmers outside the designated market yards.
 Chapter III deals with Market Committees (section 14- 36)
 Chapter IV deals with powers of the marketing committee specifically that of
chairperson, vice chairperson.
 Chapter VI deals with e-trading of agricultural commodities.
 Section 54 provides that license needs to be provided for e-trading of notified
agricultural commodities.
 Section 56 and 57 provides how the market sub yards and private market yards can
become part of the e -portal.
 Dispute settlement mechanism provided under section 61 of the act which mandates
dispute to be settled within 30 days. (disputes which arise between e-platform and
APMC)
 Section 80 of the act creates bar on civil courts for disputes related to the act.

Details of major agriculture producing States and National Capital

S.No State Act
1 Delhi Delhi Agricultural produce Marketing (Regulation) Act 1998
2 Maharashtra APMC Act 1963
3 Punjab Punjab Agricultural Produce Market Act 1961
4 Uttar UPAPMC, 1964
Pradesh
5 West Bengal WBAPM Act,1972
Delhi Agricultural Produce Marketing (Regulation) Act, 1998

(http://web.delhi.gov.in/wps/wcm/connect/doit_am/AM/Default/The+Delhi+Agricultural+P
roduce+Marketing+%28Regulation%29+Act%2C+1998)

 An Act to provide for the better regulation of marketing of agricultural produce and
the establishment of markets for agricultural produce in the National Capital
Territory of Delhi and for matters connected therewith.
 The enactment is sub divided into 15 chapters.
 Section 2 defines various terms such as market, market area, retail sale, buyer
 Section 3 allows the government to define various agricultural commodities whose
sale intends to regulate.
 Section 4 allows the government to declare an area as market wherein it can add or
delete an area.
 Section 17 enlists various functions of the board –
1) Power to inspect books of accounts of the traders who trade in the market
2) Induct people as it deems necessary for smooth functioning of the market
 3) Planning and development of the market
4) Considering new places where markets can be established, building the
infrastructural facilities required for market
5) Maintain accounts and publish them at the year end
6) Provide loans
 Section 23 establishes principal market and may also establish subsidiary markets
(for example Ghazipur Sabzi Mandi is principal market while inside the market there
is Ghazipur Faal market) It is also the duty to set up infrastructure.
 Chapter 7 deals with the powers and duties of the marketing committee (which
manages the market)
 Section 55 provides powers to the committee to regulate the entry of people and
vehicles, supervise the conduct of buying and selling, grant and suspend license, take
steps to prevent adulteration
 Section 62 provides power to the marketing committee to levy fee.
 Section 72 provides power to the committee to provide loans.
 Section 83 provides that disputes arising between the buyers and sellers to be
settled by subcommittee or an arbitrator. Appeal would lie to the board.

National Agriculture Market

 National Agriculture Market (NAM) is envisaged as a pan-India electronic trading

portal which seeks to network the existing APMC and other market yards to create a
unified national market for agricultural commodities. NAM creates a national
network of physical mandis which can be accessed online. It seeks to leverage the
physical infrastructure of the mandis through an online trading portal, enabling
buyers situated even outside the State to participate in trading at the local level.

 A National e-market platform for transparent sale transactions and price discovery in
regulated markets, kisan mandis, warehouses and private markets. Willing States to
accordingly enact provision for e-trading in their APMC Act.

 Liberal Licensing of traders / buyers and commission agents by State authorities

without any pre-condition of physical presence or possession of shop / premises in
the market yard.

 One license for a trader valid across all markets in the State.

 Harmonization of quality standards of agricultural produce and provisions of

assaying (quality testing) infrastructure in every market to enable informed bidding
by buyers. 

 Restriction of agriculture Produce Marketing Committee’s (APMC) jurisdiction to

within the APMC market yard / sub yard instead of a geographical area (the market
area) at present.

 Single point levy of market fees i.e. on the first wholesale purchase from the farmer
  Benefits of Trading on NAM

1) Transparent Online Trading

2) Real Time Price Discovery

3) Better Price Realization For Producers

4) Stable Price and Availability to Consumers

5) Quality Certification, Warehousing, and Logistics

6) More Efficient Supply Chain

7) Payment and Delivery Guarantee

8) Enhanced Accessibility to the Market

 On 14th April the e-NAM portal completed 4 years of functioning.

(https://pib.gov.in/newsite/PrintRelease.aspx?relid=202224)
 Farmers are free to register on e-NAM portal and they are uploading their produce
for sale online to the traders across all e-NAM mandis and traders can bid for the lots
available for sale on e-NAM from any location

Steps taken in regards to agricultural reform during lockdown

 In order to debottleneck Logistics of Agri Produce and providing adequate and timely
transportation facility to the farmers/traders during lockdown period, e-NAM
platform has created an Interface with large transport aggregators like Blackbuck,
Rivigo, Mavyn, Truck Suvidha, Truck Guru, Transin Logistics, Elastic Run etc. This
would help traders to find and arrange timely movement of produces from mandi to
various other locations. With this interface, Traders would be able to access more
than 7.76 lakh trucks through eNAM Platform. Farmers can download the Kisan Rath
mobile App from Play store from where trucks can be arranged.
 Warehouse based trading module enabling farmers to sell their produce from WDRA
registered warehouses notified as deemed market &
Farmer Producer Operators trading module, enabling FPOs to upload produce from
collection centres with picture/ quality parameter and also avail bidding facility
without going to mandis, which will reduce their logistic costs and hassle to sell their
produce.
 Various state governments have taken initiatives such as direct selling by farmers to
bulk buyers and Farmer Producer Operators.
 PM -kisan Samman nidhi instalments have been given before time to 8 crore
farmers. Instalment amount of 2000 to be provided.
 Lockdown conditions have been eased for harvesting of Rabi crops all over India. (eg
wheat) The para 6 of the revised guidelines deals with Agriculture and related
activities which allows mandis to function, agencies to procure agricultural produce,
farmers to work in fields, shops of agricultural machinery to remain open.
 (https://www.mha.gov.in/sites/default/files/MHA%20order%20dt
%2015.04.2020%2C%20with%20Revised%20Consolidated
%20Guidelines_compressed%20%283%29.pdf)
 RBI has announced a moratorium on agricultural loans for a period of 3 months.
 Various states such as Punjab have issued passes to farmers, district administration
has been ordered to ensure safe movement for farmers to and from mandis.

IMPORTANT POINT ALL THE CHANGES THAT HAVE BEEN BROUGHT REQUIRE AMENDMENT
IN THE APMC ACTS. THE OLDER APMC ACTS DON’T HAVE PROVISIONS FOR DIRECT
SELLING OR FOR WAREHOUSES TO BE TREATED AS SUB MARKET YARDS BUT THE MODEL
ACT OF 2017 HAS SUCH PROVISIONS. TILL DATE NO MAJOR STATE HAS RE DRAFTED ITS
APMC ACT. MOREOVER BIHAR HAS SAID IT WILL NOT IMPLEMENT THE NEW MODEL ACT.