President Ram Nath Kovind promulgates three ordinances ushering in agriculture reforms

The President on Friday promulgated three ordinances claiming to usher in agriculture reforms and help farmers trade freely and fetch better prices.

President Ram Nath Kovind promulgated The Farmers' Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020, and The Essential Commodities (Amendment) Ordinance that were approved by the Union Cabinet on Wednesday.

The ordinance on trade in farm produce aims to promote barrier-free inter-state and intra-state trade in agriculture produce.

Another ordinance empowers farmers to engage with processors, aggregators, wholesalers, large retailers and exporters through advanced agreements on pre-agreed prices.

The ordinance amending the Essential Commodities Act allows invoking the law for cereals, onions, potatoes, pulses, edible oilseeds and oils only under extraordinary circumstances or at the time of war.

The amendment permits imposition of stock limits on the above mentioned items only if there is 100% increase in the horticulture produce and 50% increase in the retail price of non-perishable agricultural foodstuff over the price prevailing in the immediate preceding 12 months or the average price over the past five years, which ever is lower.

Agriculture Minister Narendra Singh Tomar has also written to all chief ministers, seeking cooperation in implementation of the reforms.

He stressed the need for their continued support in the development and growth of the agriculture sector in the new reformed environment.