Chandigarh, Delhi

Agricultural marketing reforms recent decisions by Union Cabinet

Chandigarh, June 7, 2020: Recent decisions by Union Cabinet have found support among farmers in the states of Punjab and Haryana in the region.  These decisions, with focus on reforms in agricultural marketing, have come in the backdrop of the announcements made last month by Finance Minister  Nirmala Sitharaman under “Aatma Nirbhar Bharat Abhiyaan”. In one of the announcements, the Finance Minister proposed to formulate a central law to provide adequate choices to the farmer to sell their produce at remunerative prices, barrier-free inter-state trade and a framework for e-trading of agriculture produce.

As the Government of India puts its proposal into action, farmers in the state of Haryana have expressed enthusiasm. A farmer from the state said decisions of the central government to lift restrictions on the sale of crop production are highly appreciable and the old system kept the farmers under restrictions. Till now we were confined to selling our crop production in a restricted area only but now we can sell our products wherever we get a better price, says another farmer. Amendment to Essential Commodities Act (ECA) will remove fears of private investors of excessive regulatory interference and freedom to produce, hold, move, distribute and supply leading to harnessing of economies of scale and attract private sector/foreign direct investment into agriculture sector.

(Farmer 1, Haryana)

https://twitter.com/PIBChandigarh/status/1268781113599647745?s=09 (Farmer 1, Haryana)

(Farmer 2, Haryana)

https://twitter.com/PIBChandigarh/status/1268780873081479169?s=09 (Farmer 2, Haryana)

A similar feeling was observed in the neighboring state of Punjab as a farmer, Sarjeevan Singh said that these measures will greatly benefit the farmers and lifting of restrictions on the sale of crop produce would lead to the elimination of middlemen. Paramjit Singh, another farmer from the same state, says that the amendments in ECA would enable the farmers to sell their produce anywhere in the country thus eliminating the middlemen. ‘The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020’, as approved by the Cabinet, will help farmers engage in direct marketing thereby eliminating intermediaries resulting in full realization of price. Whereas ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’ will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.

(Sarjeevan Singh, Punjab)

https://twitter.com/PIBChandigarh/status/1268783905106038785?s=09 (Sarjeevan Singh, Punjab)

(Paramjit Singh, Punjab)

https://twitter.com/PIBChandigarh/status/1268783584992624645?s=09 (Paramjit Singh, Punjab)

To give effect to these decisions, Government of India has already promulgated two ordinances