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LATEST NEWS UPDATES | Why Punjab stands to lose from farmers’ produce trade and commerce ordinance -Parikshit Goyal

Why Punjab stands to lose from farmers’ produce trade and commerce ordinance -Parikshit Goyal

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published Published on Jun 30, 2020   modified Modified on Jul 4, 2020

-Down to Earth

Instead of putting Punjab farmers at the mercy of big corporates and private players, there is a need to strengthen existing infrastructure

The Union government announced three agriculture-related ordinances as part of its novel coronavirus disease (COVID-19) relief package — permitting agricultural trade outside the boundaries of market committees, easing regulation and control under the Essential Commodities Act and facilitating contract farming.

Out of these, the Farmers’ Produce Trade and Commerce Ordinance, 2020, seems to have the most far-reaching implications, particularly for the agrarian state of Punjab.

The Ordinance

In a nutshell, the Ordinance aims at paving the way for a ‘One Nation, One agriculture market’ by creating barrier-free intra-state and inter-state trade. The buyer can purchase directly from the farmer, without going to the state level Agricultural Market Produce Committees (APMCs) and mandis (wholesale markets).

There will be no tax or levy on such trade and buyers will not require a licence. The Ordinance allows any person having a PAN card to take part in electronic trading in agricultural produce. The objective is to provide farmers a greater choice in selling their produce, better price remuneration and attract large-scale private investment into agri-businesses.

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Down to Earth, 30 June, 2020, https://www.downtoearth.org.in/blog/economy/why-punjab-stands-to-lose-from-farmers-produce-trade-and-commerce-ordinance-72040?fbclid=IwAR0mZ5r-ODG-88ayW-TMCiSMyEiMRJG9cjJbQ_Q2lu8vcz2mwXVauQ9HtXE


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