The Farmers` Agreement on Price Assurance and Farm Services Act 2020 is a significant reform initiative by the Indian government to empower farmers and facilitate a transformed agricultural sector in the country. This act is designed to provide farmers with greater control over the pricing of their produce and access to a wider range of agricultural services.
Under the new act, farmers will be able to enter into contracts with agricultural firms, exporters, wholesalers, and retailers on a mutually agreed-upon price for their produce. This will enable farmers to receive better returns for their crops and reduce the risk of market volatility. Additionally, the act mandates that all contracts must be in writing and registered with the Agricultural Produce Market Committee (APMC) to ensure transparency and accountability.
The act also provides for the creation of a dispute resolution mechanism whereby farmers can seek fair settlement in case of conflict with the contract counterparties. The government has established a framework for conciliation, mediation, and arbitration to ensure timely resolution of disputes.
To further ease the burden on farmers, the act allows them to engage with third-party service providers for farm-related activities such as harvesting, grading, sorting, and packaging. This will enable farmers to access the latest technologies and farm management practices and improve the quality of their produce.
The act also exempts contract farming from the purview of the Essential Commodities Act, which is a significant change that will provide greater flexibility to farmers and businesses. It will promote private investment in the agricultural sector and pave the way for a more competitive and efficient agricultural market.
Several experts have hailed the act as a potential game-changer for the Indian agricultural sector. By giving farmers greater access to markets and services, the act could help attract private investment, spur innovation, and stimulate economic growth in rural areas. Moreover, it will reduce the dependence of farmers on traditional middlemen and create a more transparent market ecosystem.
Overall, the Farmers` Agreement on Price Assurance and Farm Services Act 2020 is a much-needed reform that will bring several benefits to Indian farmers and the agricultural sector. It will enable farmers to overcome the long-standing issues of low prices, limited market access, and weak bargaining power and promote an environment that is conducive to innovation and growth. The implementation of the act will undoubtedly be a challenge, but the potential benefits are enormous, and the Indian government must take all necessary steps to ensure its successful implementation.
