Govt introduces three ordinances to help farmers earn more

The Union Cabinet on Wednesday decided to promulgate three Ordinances to ease farmers’ access to markets across the country to sell their produce, help them enter contracts to get assured returns and exempt farm products from the Essential Commodities Act (ECA).

Wednesday’s announcements were part of the relief measures unveiled by the Modi government last month to soften the impact of the COVID-19-induced lockdown on the economy.

According to the amendments approved to the 65-year-old ECA, farm produce such as cereals, pulses, oilseeds, onions and potatoes will be exempted from the law that allowed government impose stock limits in case of sharp rise in prices.

“The ECA was enacted when the country faced shortages. Today we are a country of surpluses,” I&B Minister Prakash Javadekar told reporters briefing on the decisions taken by the Union Cabinet.

Besides enabling better price realisation for farmers, the ECA amendment will also ensure that no stock limits shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand.

With agriculture a state subject, the Centre decided to enact a new law to declare places beyond the Agriculture Produce Marketing Committee area as market places, thus, allowing doorstep purchase of farm produce.

“The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’ will promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations,” Agriculture Minister Narendra Singh Tomar said.

He said the move will help small and marginal farmers who will save money on transporting their produce to wholesale markets.

“This is a historic-step in unlocking the vastly regulated agricultural markets in the country,” he said.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020 is expected to empower farmers to engage with food processors, aggregators, wholesalers, large retailers and exporters on a level playing field without any fear of exploitation, Tomar said.