Farmers’ Produce Trade and Commerce Act 2020

Has overriding powers in case of any inconsistency with APMC acts of States.

Any farmer/trader is free to do trade (buy/sell) his produce (including milk, livestock etc.) across India (but outside APMCs or State regulated mandis). It will include trade at any place like the farm gate, (processing) factory premises, warehouses, cold-storages etc. or any online market platform.

No market fee/cess/levy, or any other charge, shall be levied on any farmer/trader in physical mandi or electronic trading platform for trade/commerce happening outside the state APMC mandi.

The trader should make payment to the farmer on the same day of transaction.

Separate dispute resolution mechanism where the farmer or the trader may seek conciliation from a Conciliation Board appointed by Sub-Divisional Magistrate

Impact of Farmers’ Produce Trade and Commerce Act 2020

Will help in the creation of “one nation one market” by directly connecting farmers with buyers without any intermediary.

Will reduce wastage, increase efficiency and will unlock value for our farmers and help in increasing their income.

Will result in timely payment to farmers and will reduce exploitation of farmers.

Since, outside the APMC mandi trade will not have any tax by States, it will result in competition for State APMC Mandis and will force them to improve.

As there will not be any tax outside the APMC mandi, it will result in cheaper agri- products for the consumer without reducing the prices for the farmers.

As there will be more private mandis, it will result in better prices for farmers due to increased competition.

Opening of private mandis will result in more business opportunities for the Commission agents (arathiyas) and other stakeholders (who already have experience of agri trade) where they can venture out to offer additional services that can be useful to local farmers like seed/soil testing facilities, sorting/grading facilities, warehousing, cold storage and processing facilities and hence job creation.

Timely settlement of disputes.