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LATEST NEWS UPDATES | Political Economy of Agricultural Market Reforms: Analysis of the Farming Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 -Vikas Rawal, Suvidya Patel and Jesim Pais

Political Economy of Agricultural Market Reforms: Analysis of the Farming Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 -Vikas Rawal, Suvidya Patel and Jesim Pais

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published Published on Oct 10, 2020   modified Modified on Oct 11, 2020

-Vikalp.ind.in

While the country is grappling with the COVID-19 pandemic and the economy is in doldrums, the central government, instead of taking measures to provide immediate relief to the distressed population, has used the opportunity to introduce sweeping changes in the regulatory framework of the agricultural marketing system of the country. On June 3, 2020, the Cabinet approved three ordinances. These ordinances were converted into Acts after they were passed, under controversial circumstances and despite stiff resistance of almost all the opposition parties, in the Monsoon session of the parliament.

This article provides a critical assessment of the likely impact of the Farming Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 (FPTCA). It has been argued by the government that this Act will lead to transparent and barrier-free trade of agricultural produce and the emergence of alternative private marketing channels will result in better price realisation for farmers’ produce.

The system of regulated markets, introduced first in India in the 1930s, was expanded to almost all the States after Independence to protect farmers from exploitation by traders, to ensure that they received remunerative prices, and to ensure that they received timely payments for their produce. Since agricultural marketing was a State subject under the Constitution of India, the APMC Acts were passed by the States. The network of regulated markets expanded greatly in the 1970s and 1980s.

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Vikalp.ind.in, 10 October, 2020, https://vikalp.ind.in/2020/10/political-economy-of-agricultural-market-reforms-analysis-of-the-farming-produce-trade-and-commerce-promotion-and-facilitation-act-2020/?fbclid=IwAR3GA2BqZO4dcp77J9OO8CxGk5kjqAu_H901EW5zxQgx1-


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