{"id":9704,"date":"2020-09-19T22:52:28","date_gmt":"2020-09-19T17:22:28","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=9704"},"modified":"2023-04-07T12:12:59","modified_gmt":"2023-04-07T06:42:59","slug":"ordinances-for-agriculture-reforms","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/ordinances-for-agriculture-reforms\/","title":{"rendered":"Ordinances For Agriculture reforms"},"content":{"rendered":"<h1>Ordinances For Agriculture reforms<\/h1>\n<h3><span style=\"color: #0000ff;\">Relevance: Prelims\/Mains: G.S paper II: Governance &amp; G.S paper III: Indian Economy: Agriculture<\/span><\/h3>\n<h3><span style=\"color: #ff0000;\">Why in News?<\/span><\/h3>\n<p>Recently, the Cabinet has approved a proposal to promulgate three separate ordinances\u00a0<strong>to push agriculture marketing and commodities trade reforms<\/strong>\u00a0in the country.<\/p>\n<ul>\n<li>These reforms are part of the\u00a0<strong>third tranche of the economic package<\/strong>\u00a0announced under\u00a0<strong>Atmanirbhar Bharat Abhiyan<\/strong>\u00a0to counter\u00a0<strong>Covid-19 pandemic<\/strong>.<\/li>\n<li>These ordinances are expected to give effect to the\u00a0<strong>amendments proposed to the Essential Commodities Act<\/strong>\u00a0and bring in two new Central laws on inter-state trading and engagement of the farmers with processors, exports, etc.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/static.toiimg.com\/img\/76188252\/Master.jpg\" alt=\"One India One Agriculture market: Cabinet clears ordinances to kick in agri reforms, create 'One India, One Agri-Market' | India News - Times of India\" \/><\/p>\n<h3><span style=\"color: #ff0000;\">Amendments to Essential Commodities Act (1955)<\/span><\/h3>\n<ul>\n<li><strong>Background:<\/strong>\n<ul>\n<li>India has become surplus in most agri-commodities but farmers have been\u00a0<strong>unable to get better prices due to lack of investment<\/strong>\u00a0in cold storage, processing and export.<\/li>\n<li>The\u00a0<strong>imposition of the curbs on stocking<\/strong>\u00a0of farm produce and\u00a0<strong>regulation of the prices of commodities,<\/strong>\u00a0etc. under\u00a0<strong>Essential Commodities Act (ECA)<\/strong>\u00a0are some of factors responsible for\u00a0<strong>less entrepreneurial spirit<\/strong>\u00a0and thus<strong>\u00a0less investment<\/strong>\u00a0in the farm sector.<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #ff0000;\"><strong>Benefits of Amendments:<\/strong><\/span>\n<ul>\n<li>The amendment would<strong>\u00a0deregulate the commodities<\/strong>\u00a0such as cereals, edible oils, oilseeds, pulses, onions and potatoes. It will help to\u00a0<strong>lessen the fears of private investors<\/strong>\u00a0of\u00a0<strong>excessive regulatory interference<\/strong>\u00a0in their business operations.<\/li>\n<li>Any<strong>\u00a0limits under ECA<\/strong>\u00a0over these commodities will be\u00a0<strong>imposed only in exceptional circumstances<\/strong>\u00a0such as war, famine, extraordinary price rise and natural calamity.<\/li>\n<li>The<strong>\u00a0freedom to produce, hold, move, distribute and supply<\/strong>\u00a0will lead to harnessing economies of scale and attract private sector\/foreign direct investment into the agriculture sector.<\/li>\n<li>It will help drive up investment in cold storages and modernization of the food supply chain.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Significance:<\/strong>\n<ul>\n<li>The announced amendment is expected to help both farmers and consumers while bringing in\u00a0<strong>price stability.<\/strong><\/li>\n<li>It will also create a\u00a0<strong>competitive market environment<\/strong>\u00a0and also prevent wastage of agri-produce that happens due to lack of storage facilities.<\/li>\n<li>It is considered as a<strong>\u00a0step towards transformation of agriculture and raising farmers\u2019 income.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span style=\"color: #ff0000;\">Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020<\/span><\/h3>\n<ul>\n<li><strong>Background:<\/strong>\n<ul>\n<li>Currently, there are\u00a0<strong>restrictions for farmers in selling agri-produce<\/strong>\u00a0outside the notified<strong>\u00a0Agricultural Produce Market Committee (APMC)<\/strong>.<\/li>\n<li>The farmers are also restricted to sell the produce\u00a0<strong>only to registered licensees of the State Governments.<\/strong><\/li>\n<li>Further,\u00a0<strong>barriers exist in free flow of agriculture<\/strong>\u00a0produce between various States owing to the prevalence of\u00a0<strong>various APMC legislations<\/strong>\u00a0enacted by the\u00a0<strong>State Governments.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #ff0000;\"><strong>Benefits of Ordinance:<\/strong><\/span>\n<ul>\n<li>It will create an ecosystem where the farmers and traders would\u00a0<strong>enjoy freedom of choice of sale and purchase of agri-produce.<\/strong><\/li>\n<li>It will also promote\u00a0<strong>barrier-free inter-state and intra-state trade and commerce<\/strong>\u00a0outside the physical premises of markets notified under State agricultural produce marketing legislations.<\/li>\n<li>The ordinance also proposes an\u00a0<strong>electronic trading in transaction platform<\/strong>\u00a0for ensuring a seamless trade electronically.<\/li>\n<li>It also proposes to set up a\u00a0<strong>separate dispute resolution mechanism<\/strong>\u00a0for the farmers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Significance:<\/strong>\n<ul>\n<li>It will open\u00a0<strong>more choices for the farmer, reduce marketing<\/strong>\u00a0costs for the farmers and help them in getting<strong>\u00a0better prices.<\/strong><\/li>\n<li>It will supplement the existing\u00a0<strong>Minimum Support Price (MSP)<\/strong>\u00a0procurement system and both will help to provide\u00a0<strong>stable income to farmers.<\/strong><\/li>\n<li>It will also help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.<\/li>\n<li>It is expected to pave the way for creating<strong>\u00a0One India, One Agriculture Market<\/strong>\u00a0in the country.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span style=\"color: #ff0000;\">Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020<\/span><\/h3>\n<ul>\n<li><strong>Background:<\/strong>\n<ul>\n<li>Indian Agriculture is characterized by\u00a0<strong>fragmentation due to small holding sizes<\/strong>\u00a0and has certain weaknesses such as weather dependence, production uncertainties and market unpredictability.<\/li>\n<li>It makes agriculture<strong>\u00a0risky and inefficient<\/strong>\u00a0in respect of both\u00a0<strong>input &amp; output management.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #ff0000;\"><strong>Benefits of Ordinance:<\/strong><\/span>\n<ul>\n<li>It empowers<strong>\u00a0farmers for engaging<\/strong>\u00a0with processors, wholesalers, aggregators,wholesalers, large retailers, exporters etc.and thus<strong>\u00a0eliminating intermediaries<\/strong>\u00a0resulting in full realization of price.<\/li>\n<li>Farmers have been provided adequate protection. Sale, lease or mortgage of farmers\u2019 land is totally prohibited and farmers\u2019 land is also protected against any recovery.<\/li>\n<li>It also provides an\u00a0<strong>effective dispute resolution mechanism<\/strong>\u00a0for with clear timelines for redressal<\/li>\n<li>It contains mechanisms which would\u00a0<strong>transfer the risk of market unpredictability<\/strong>\u00a0from the farmer to the sponsor.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Significance:<\/strong>\n<ul>\n<li>It also enables the farmer to<strong>\u00a0access modern technology and better inputs.<\/strong>\u00a0It will\u00a0<strong>reduce the cost of marketing<\/strong>\u00a0and improve income of farmers<\/li>\n<li>It will help to<strong>\u00a0attract private sector investment<\/strong>\u00a0for building supply chains for supply of Indian farm produce to global markets. .<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span style=\"color: #ff0000;\">Way Forward<\/span><\/h3>\n<ul>\n<li>These ordinances are expected\u00a0<strong>to build necessary agrarian infrastructure<\/strong>\u00a0in the country which are expected to resolve a number of issues of the agricultural sector.<\/li>\n<li>It is considered as a visionary step towards\u00a0<strong>transformation of agriculture and raising farmers\u2019 income.<\/strong><\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong> <\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ordinances For Agriculture reforms Relevance: Prelims\/Mains: G.S paper II: Governance &amp; G.S paper III: Indian Economy: Agriculture Why in News?<\/p>\n","protected":false},"author":1,"featured_media":9277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,18,42],"tags":[297,2219,136,2222,2220,2221,1729,896,2223,2218,2217,1391,392,2224],"class_list":["post-9704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-ii","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","tag-agriculture","tag-atmanirbhar-bharat-abhiyan","tag-current-affairs","tag-empowerment-of-farmers","tag-essential-commodities-act","tag-farming-produce-trade","tag-governance","tag-indian-economy","tag-one-india-one-agriculture-market","tag-ordinances","tag-reforms","tag-triumph-ias","tag-union-public-service-commission-upsc","tag-upsc-civils"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=9704"}],"version-history":[{"count":2,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9704\/revisions"}],"predecessor-version":[{"id":13660,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9704\/revisions\/13660"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/9277"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=9704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=9704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=9704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}