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LATEST NEWS UPDATES | Why Rajasthan Farm Act amendments may lack the teeth to help farmers -Sukhpal Singh

Why Rajasthan Farm Act amendments may lack the teeth to help farmers -Sukhpal Singh

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published Published on Nov 2, 2020   modified Modified on Dec 14, 2020

-Business Standard

Rajasthan has amended The Farmers' Produce Trade and Commerce (promotion and facilitation) Act, 2020 to restore what it calls 'the safeguards for the farmers of the state' as under state's APMC Act

The Congress-ruled states’ plan to nullify the three central laws on agricultural markets and provide for alternatives of their own for protection of famer interest, especially on prices for their produce has been executed with three states of Punjab, Chhattisgarh and Rajasthan passing the amendments to the central Acts in their assemblies. Punjab took the lead, but ended up mainly focussing on paddy and wheat prices by making MSP as the minimum purchase price for any buyer in any channel and penalising any violation of that, besides the state government protecting its own revenue. Chhattisgarh has acquired the power for the state government to declare or set up any place as deemed mandi, including private wholesale markets for regulation of notified agricultural produce and empowers the market committee or the Board to order production of accounts of any buyer regarding purchase and sale of the notified agricultural produce from any person and inspect godowns and vehicles and seize them. But, it has not made MSP mandatory for any purchase unlike Punjab or Rajasthan.

Trade and commerce Act amendments

Rajasthan has amended The Farmers’ Produce Trade and Commerce (promotion and facilitation) Act, 2020 to restore what it calls ‘the safeguards for the farmers of the state’ as under the state’s APMC Act. It brings back the status quo in terms of the domain of the state APMC Act as it was before June 5, 2020. However, unlike Punjab’s MSP provision for two crops, the Rajasthan amendment, like Chhattisgarh, steers clear of the MSP issue and only makes the ‘harassment’ of the farmer by any buyer as punishable offence with not less than three years and up to seven years of imprisonment or fine upto not less than Rs five lakh or both. The harassment of the farmer is defined as ‘where the trader does not accept the delivery of the farm produce agreed upon or having accepted the delivery does not make the payment to the farmer in accordance with the terms of the agreement or within three days from the date of receipt of delivery of good whichever is earlier’. For this offence, all the directors or partners of the company would be guilty if they were serving the company at the time of commitment of such offence.

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Business Standard, 2 November, 2020, https://www.business-standard.com/article/economy-policy/why-rajasthan-farm-act-amendments-may-lack-the-teeth-to-help-farmers-120110200595_1.html


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