There have been nationwide protests by farmers – particularly in Haryana, Punjab and western Uttar Pradesh – against the three bills that the government says will open up the agricultural sector to private investors and global markets. [7]. Essential Raw Materials (Amendment) Ordinance, 2020, Ministry of Consumption, Food and Public Distribution, 5 June 2020. Except as otherwise provided in this Act, a supplier of agricultural services may become a party to the agricultural agreement. In this case, the role and services of the provider are expressly mentioned in the contract. The government claimed that the law helps protect farmers working with agribusinesses, processors, wholesalers, exporters or large retailers of agricultural services and the sale of future agricultural products in a fair and transparent manner through a contract through a mutually agreed lucrative pricing framework. [7] The Farmers` Price Insurance and Agricultural Services Agreement (Empowerment and Protection) Order 2020 and the Agricultural Trade and Trade (Promotion and Facilitation) Order 2020 were promulgated by the Trade Union Cabinet on 5 June 2020. Who is a “farmer” within the meaning of this law? What is an “agricultural agreement”? The Trade and Commerce Regulations provide buyers with the freedom to purchase agricultural products outside of CMPA markets without having a licence or paying fees to the CMPA. The Contract Cultivation Ordinance provides buyers and farmers with a framework for concluding a contract (before the start of a harvest season) that guarantees farmers a minimum price and buyers a secure supply. The third regulation amends the Basic Materials Act so that stock limits for agricultural products can only be imposed in the event of a sharp increase in retail prices and exempts participants and exporters in the value chain from any stock limits.

All three regulations aim to increase buyers` availability for farmers` products by allowing them to act freely without licensing or stock restrictions, so that increased competition between them leads to better prices for farmers. [9] Although the regulations are intended to liberalize trade and increase the number of buyers, this may not be enough to attract more buyers. [9]. “PM chairs Cabinet Meeting to give historic boost to Rural India,” Press Information Office, Ministry of Agriculture and Farmers Welfare, June 3, 2020. The Farmers` Agreement (Empowerment and Protection) on the Price Insurance and Agricultural Services Ordinance, 2020, 2020 In 2017-2018, the central government issued the APMC model and contract farming laws to enable unrestricted trade in agricultural products, promote competition through multiple marketing channels, and promote agriculture under pre-agreed contracts. [3],[4] The Standing Committee (2018-2019) noted that states have not implemented several of the reforms proposed in the model laws.13 It recommended that the central government form a committee of ministers of agriculture from all states in order to reach consensus and draft a legal framework for agricultural marketing. In July 2019, a high-level committee of seven chief ministers was established to discuss, among other things: (i) the timely adoption and implementation of model laws by states, and (ii) amendments to the Essential Products Act of 1955 (which provides for production control, supply and trade in essential raw materials) to attract private investment in agricultural marketing and infrastructure. [5] No farmer can conclude an agricultural agreement “by way of derogation from the rights of a partial plotter”. The parties to an agricultural agreement may, by mutual agreement, amend or terminate the agreement for any “reasonable” reason. An agricultural agreement may be linked to insurance or credit instruments under a central or state government system or through a financial service provider to ensure “risk mitigation” and a flow of credit to the farmer, the promoter or both.

Agricultural products mentioned in agreements under this Act are exempt from the application of all state laws regulating the sale or purchase of agricultural products. Notwithstanding the provisions of the Essential Products Act 1955 or any ordinance in force at that time, such products are exempt from “any obligation relating to the limitation of storage”. On the 14th. In September 2020, the Lok Sabha introduced three bills “to transform agriculture in the country and increase farmers` incomes” – the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020; the Agricultural Trade and Commerce (Promotion and Facilitation) Bill 2020; and the Essential Products Amendment Bill, 2020. The Act provided for a three-stage dispute settlement mechanism by the conciliation body, the subdivision judge and the appellate authority. The agreement was to provide for a conciliation body and a conciliation procedure for the settlement of disputes. [8] The law has been the subject of much criticism from farmers across the country, particularly in Punjab and Haryana. .