The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 received the President’s assent on 24-09-2020.

Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

Purpose of the Act:

The following are the objectives of the Act:

  • Creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to the sale and purchase of farmers’ produce which facilitates the remunerative process through competitive alternative trading channels.
  • To promote efficient, transparent and barrier-free inter-State and intra-State trade and commerce of farmers’ produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations.
  • To provide a facilitative framework for electronic trading and for matters connected.

Key Highlights

Freedom to conduct trade and commerce in a trade area [SECTION 3]

Any farmer or trader or electronic trading and transaction platform shall have the freedom to carry on the inter-State or intra-State trade and commerce in farmers’ produce in a trade area.

Trade and commerce of scheduled farmers’ produce [SECTION 4]

Any trader may engage in the inter-State trade or intra-State trade of scheduled farmers’ produce with a farmer or another trader in a trade area.

Trader who transacts with farmers shall make payment for the traded scheduled farmers’ produce on the same day or within the maximum three working days.

Market fee under State APMC Act, etc., in the trade area [SECTION 6]

No market fee or cess or levy under any State APMC Act or any other State Law shall be levied for trade and commerce in scheduled farmers’ produce in a trade area.

Price Information and Market Intelligence System [SECTION 7]

Central Government may develop a Price Information and Market Intelligence System for farmers’ produce and framework to disseminate information relating to the stated.

Dispute Resolution Mechanism for Farmers[SECTION 8]

In the incident of any dispute arising between the farmer and trader with respect to a transaction, parties may seek a mutually acceptable solution through conciliation by filing an application to the Sub-Divisional Magistrate, who will further refer the dispute to a Conciliation Board.

Suspension or cancellation of the right to operate in electronic trading and transaction platform [SECTION 9]

The Agriculture Marketing Adviser, Directorate of Marketing and Inspection, Government of India or an officer of the State Government may on its own motion or on a petition or reference from any Government Agency take cognizance of any breach of the procedures, norms, manner of registration and code of conduct or any breach of the guidelines for fair trade practices by the electronic trading and transaction platform.

Appeal against cancellation of right to operate [SECTION 10]

An appeal can be made under this Section on being aggrieved by an Order under Section 9.

To Read the detailed Act, please follow the link given below:

Ministry of Law and Justice

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One comment

  • I like the way you explain the act. But i wanted to know your opinion on this act as whether this act is beneficial to the farmers or not

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