IndianEra > Government > Modi government puts forward farming bills in Rajya Sabha

In an unprecedented move, the ruling government introduced three agriculture sector-related bills on Sunday while there was a severe resistance from the opposition parties.

The bills aim to ease trade regulations in agricultural commodities and were passed by the Lok Sabha.

First Bill – Farmer’s produce Trade and Commerce Bill, 2020

First Bill – Farming Bills in Rajya Sabha

Provisions the bill offers

  • Creating an ecosystem which allows farmers and tradesmen to sell and buy farm produce outside their currently registered ‘mandis’ status with the states’ APMCs
  • Promoting no-barrier inter and intrastate trading of agricultural produce
  • Bring down marketing and transportation prices and ensure higher pricing for the farm’s produce
  • Create a sound framework for e-trading


Rebuttal by the Opposition

  • States would lose out on revenue as they will be unable to collect ‘mandi fees’ when farmer start selling their produce out of the range of registered APMC’s
  • In case of the entire farming produce being moved out of the mandis, what would be the future of states’ commission agents?
  • Might lead to an end in the MSP-based purchase system

Second Bill – Farmer Agreement of Price Assurance and Farm Services Bill, 2020

Second Bill – Farming Bills in Rajya Sabha

Provisions the bill offers

  • Farmers can now build contracts with agribusiness organizations, wholesale dealers, and retailers at a pre-fixed price
  • Small farmers, who own land less than five hectares, would gain through the contract
  • Lesser onus of market unpredictability by farmers and more towards sponsors
  • Ensuring better access to modern equipment for farmers
  • Bring down the marketing costs and enhance farmer’s income
  • Engaging in direct marketing by eliminating intermediaries
  • Better conflict resolution through redressal time measures

Rebuttal by the Opposition

  • Farmers in contract agreements would become the weak parties for their inability to negotiate what’s required
  • Sponsors might not be interested in dealing with a variety of small scale and marginal farmers
  • Sponsors might have the mighty hand as they are usually private organizations, wholesalers, and exporters

Third Bill – The Essential Commodities Bill, 2020

Third Bill – Farming Bills in Rajya Sabha


  • Removal of commodities like pulses, onions, potatoes, and oilseeds from the list of essentials which would remove the stocking impositions apart from emergencies such as war
  • Helps attract FDI into the agriculture sector, which would help private investors fears of heightened regulatory interferences or conditions in business
  • Procuring investment for farm infrastructure, for example, cold storages and food supply chain
  • Ensuring price stability by helping consumers and farmers
  • Reduce farm produce waste


Rebuttal by the Opposition

  • Price limits too high that the ‘exceptional circumstances’ category might not be triggered
  • Puts more power in the hands of big companies to pile up on commodities, which will lead to dictating conditions to farmer leading to low prices

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Posted by IndianEra, 21/09/2020
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