Ordinances on agri reforms issued, Will KCR obey as Thomar writes letter

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The President of India has promulgated two Ordinances with the aim of giving a boost to rural India for farmers engaged in agriculture and allied activities.

The Union Minister for Agriculture Narendra Singh Tomar today informing all the Chief Ministers through a letter including the Telangana CM K Chandrasekhar Rao of the Ordinances and solicited their cooperation in the implementation of the reforms. He stressed the need for their continued support in the development and growth of the agriculture sector in the new reformed environment.

The ordinances were issued pertaining to the following:

  1. The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020
  2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020

The move came following the approval of the Union Cabinet to bring in reforms in the agricultural sector for raising the income of the farmers as part of the ‘Aatmanirbhar Bharat Abhiyan’ of the Prime Minister Narendra Modi government.

The Government drafted and circulated the Model Agriculture Produce and Livestock Marketing (APLM) Act 2017, and also the Model Agriculture Produce and Livestock Contract Farming Act of 2018, for adoption by the states only to make farmer to sell agriculture produce at a place of his choice for a better price by increasing the number of prospective buyers. A facilitative framework was also considered necessary for farming agreements. Thus the two ordinances have been promulgated

The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020”  will provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce which facilitates remunerative prices through competitive alternative trading channels. It will promote efficient, transparent and barrier-free inter-State and intra-State trade and commerce of farmers’ produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations. Besides, 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” will provide for a national framework on farming agreements that protects and empowers farmers to engage with agribusiness 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.

The details of the above two above Ordinances is available on the website of the Department of Agriculture, Cooperation and Farmers Welfare at agricoop.nic.in.

It may be recalled, the Chief Minister Chandrasekhar Rao has recently written a letter to the Prime Minister Narendra Modi expressing his reservations over the proposed Electricity Amendment Act 2020 by the Union Cabinet alleging it is to curtail the say over the Discoms. In this backdrop, it is to be seen how KCR would react to these ordinances as it might interfere in his proposed Restrictive Agriculture Farming Policy the draft policy of which is under the process of finalisation.