The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill
- September 17, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
Subject: Agriculture
Context:
The bill was introduced in Loksabha
Concept:
- It seeks to provide for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for matters connected therewith or incidental thereto.
Background
- Indian agriculture is characterized by fragmentation due to small holding sizes and has certain weaknesses such as weather dependence, production uncertainties and market unpredictability.
- This makes agriculture risky and inefficient in respect of both input & output management.
- This legislation will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern technology and better inputs.
- It will reduce cost of marketing and improve income of farmers.
- Farmers will engage in direct marketing thereby eliminating intermediaries resulting in full realization of price. Farmers have been provided adequate protection.
- Effective dispute resolution mechanism has been provided for with clear time lines for redressal.