President promulgates 2 Ordinances to boost rural India and agriculture

The President of India has promulgated the two Ordinances namely the Farmers’ Produce Trade and Commerce Ordinance 2020 and the Farmers Agreement on Price Assurance and Farm Services Ordinance 2020.

The move comes after the announcement of the landmark decisions by the Government of India for reforms in the agricultural sector for raising the income of the farmers as part of the Aatmanirbhar Bharat Abhiyan.

The ordinance aims to boost rural India for farmers engaged in agriculture and allied activities.

The two ordinances will enable barrier-free trade in agriculture produce, and also empower the farmers to engage with sponsors of his choice.

It provides the freedom to the farmers, which is of paramount importance.

The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020:

The ordinance will support the farmers and traders relating to the sale and purchase of farmers’ produce which facilitates remunerative prices through competitive alternative trading channels.

It will promote transparent, efficient, and barrier-free inter-State and intra-State trade and commerce of farmers’ produce that are produced outside the deemed markets notified under various State agricultural produce market legislations.

Also, the Ordinance will provide a facilitative framework for electronic trading and matters connected therewith or incidental thereto.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020:

The ordinance will provide for a national framework on farming agreements.

It will protect and empower farmers to engage with agri-business firms, wholesalers, exporters, or large retailers.

The ordinance will enhance farm services and sale of future farming produce at a mutually agreed remunerative price framework and transparent manner.