After following the protests for 38 days, I finally decided to have a glance at the laws passed amidst a din in the parliament towards the end of September. Was expecting them to be enmeshed in legalese. But, they are actually pretty simple to read and understand the implications…
- Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
- The traders can enjoy the freedom of choice relating to sale and purchase of farmers’ produce.
- Alternative trading channels can be setup and only Central Government has the authority to monitor them.
- New definition of “trade area” given which exclude markets or deemed markets under each State APMC
Act. Freedom to “electronic trading” of farmers produce. - The Central Government takes over all matters of trade away from State APMC acts where in “Central Government
Organisation” is defined to include any subordinate or attached office, Government owned or promoted
company or society. - One just needs a permanent account number to trade in any “farmers’ produce” defined in the law.
- The Sub-Divisional Magistrate has sweeping authorities to redress disputes and the decide the settlement. The settlement so arrived arrived is binding on both parties.
- If any party is aggrieved by the order of the Sub-Divisional Authority, they may appeal before the Appellate Authority who can be a Collector or Additional Collector. The order of this Authority may be appealed with an officer not below the rank of Joint Secretary to the Government of India to be nominated by the Central Government.
- These orders shall have force of the decree of a civil court. Decretal amount shall be recovered as arrears
of land revenue. - You cannot file a suit, prosecution or other legal proceedings against the Central or State Government or any officer or any other person in respect of anything which is done in good faith under this Act.
- No civil court shall entertain any suit or proceeding against this Act. Cognizance of disputes can be taken and disposed of by only an authority empowered by or under this Act or the rules.
- Fines from twenty-five thousand rupees to a maximum of ten lakh rupees only.
- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
- A farming agreement can be entered into between a farmer and sponsor, for a minimum of 1 crop season or 1 production cycle of livestock, to a maximum of 5 years. If the production cycle is longer, it may be mutually decided by both parties.
- The T&Cs of the agreement can be around time of supply, quality, grade, standards, price and “such other matters”. Quality, grade and standards must be mutually agreed and explicitly mentioned.
- A price may be determined and mentioned with a mechanism to determine any additional amount over and above this guaranteed price.
- The sponsor shall take the produce delivery at the farm gate within the agreed time and may, before accepting the delivery, inspect the quality or any other feature of such produce specified in the agreement.
- The sponsor shall make payment of agreed amount at the time of accepting the delivery. For seed production, the payment can be a minimum of 2/3rd of the agreed amount and remaining should be paid after certification or no later than 30 days.
- The sponsor is prohibited from acquiring ownership rights or making permanent modifications on
farmer’s land or premises. - Both the parties together or individually link the farming agreement with insurance or credit.
- At any time, the parties to this agreement with mutual consent, alter or terminate this agreement for any reasonable cause.
- A dispute arising of this agreement can be referred to a conciliation board consisting of representatives of
parties to the agreement. - If parties fail to reach a conciliation within 30 days of dispute, they can approach Sub-Divisional Magistrate who shall be the Sub-Divisional Authority who can decide and pass an order.
- Every order passed by the Sub-Divisional Authority shall have same force as a decree of a civil court and be enforceable in the same manner as that of a decree under the Code of Civil Procedure.
- If any party is aggrieved by the order of the Sub-Divisional Authority, they may appeal before the Appellate Authority who can be a Collector or Additional Collector. Again, this order has the same force as a decree of a civil court and can be enforced as such.
- No action for recovery of dues against farmer’s land.
- No legal suit can be made against Government or its authorities who do anything under this act in good faith.
- No civil court shall entertain any suit or proceeding against this Act.
- This act to will have an overriding effect over State law after it comes into effect.
- Essential Commodities (Amendment) Act 2020
- Act passed on 26th September,2020 is deemed to have come into force on 5th day of June, 2020.
- Amendment to Essential Commodities Act, 1955 – supply of cereals, pulses, potato, onions, edible oilseeds and oils can be regulated only under extraordinary circumstances which may include war, famine, extraordinary price rise and natural
calamity of grave nature. - Action on imposing stock limit of any agricultural produce can be based on price rise if (i) retail price of horticultural produce increase 100% or (ii) increase of retail price of non-perishable agricultural foodstuff increase 50%, over the 12 month preceding price or average retail price of past 5 years, whichever is lower.
- This limit shall not apply to a processor or value chain participant (defined as some one involved in processing, packaging, storage, transport and distribution) of any agricultural produce if it doesn’t exceed installed capacity of processing, or the demand for export in case of an exporter.
