THE FARMERS’ PRODUCE TRADE AND COMMERCE (PROMOTION AND FACILITATION) BILL, 2020 followed by second one THE FARMERS (EMPOWERMENT AND PROTECTION) AGREEMENT ON PRICE ASSURANCE AND FARM SERVICES BILL, 2020.

 

Two bills relating to farming sector has been passed by both houses of parliament . now bill will be sent to President for his assent.  bill named as THE FARMERS’ PRODUCE TRADE AND COMMERCE (PROMOTION AND FACILITATION) BILL, 2020 followed by second one THE FARMERS (EMPOWERMENT AND PROTECTION) AGREEMENT ON PRICE ASSURANCE AND FARM SERVICES BILL, 2020.

this bill introduce new provisions which may result in benefit as well harmful for them in many manner . let consider….

Who is farmer ?

Bill interpret the meaning of farmer . also suggest which person shall be deemed as a farmer . according to section 2 . any individual who produce farming by self or by hired labor including farmer produce organisation  said to be farmer. According to this definition a person owner of huge land who produce farming by engaging hired labor also said to be farmer.

It also include fishing poultry professional as a farmer. If we connect the definition of farmer as well as definition of farming produce. We can conclude them as a farmer.

 “farmers’ produce” means acc. To bill––(i) foodstuffs including cereals like wheat, rice or other coarse grains,pulses, edible oilseeds, oils, vegetables, fruits, nuts, spices, sugarcane and products of poultry, piggery, goatery, fishery and dairy intended for humanconsumption in its natural or processed form;(ii) cattle fodder including oilcakes and other concentrates; and(iii) raw cotton whether ginned or unginned, cotton seeds and raw jute.

Provisions for benefit of farmer.

1.       Generally this bill remove any type of intermediary including state. In general agriculture produce market committee created by each state which regulate the farming produce selling or buying activities in state. State government buy farming produce from the farmers in minimum selling price then they sell in APMC market. Like in delhi ‘azadpur mandi and keshopur mandi etc. now farmer can sell their produce directly to the buyer , trader or sponsor.  as well as according to section 6of  bill prohibits state to levy or cess any type of tax from the  farmers.

2.       Bill introduce new method of agreement based selling of their farming produce. In which agreement  have to be sign between farmer and sponsor , trader or any person who sell seed or provide any service to farmer. Acc. To section 4[3] trader is bound by the bill to pay the amount to farming after getting the delivery of farming produce within three working days.

3.       Farmer can set or decide their own amount for producing farm products. In agreement there will be many clauses like amount clause, delivery date clause, product grade clause, quality and quantity clause . bill  introduce one year time period for every every agreement which can be extended to five years. More than five years according to agreement. Now farmer and sponsor can jointly decide about the farm produce quality and growth on the conditions of farmer without state interruptions.

ADJUDICATORY AUTHORITY UNDER BILL.

1.      Any dispute arising from the signed agreement will be deal by sub divisional magistrate according to section 6. Sub divisional magistrate shall appoint conciliation board which consist of chairperson and other 2-4 members.

2.      Decision / order of SDM shall be deemed as a order of civil court under civil procedure code. Therefore it will be subject to appealable in appellate jurisdiction  example in collector.

3.      Recommendation of board shall be signed by the parties in memorandum of understanding  form. If the party fails to perform / fulfill the terms of  signed mou within 30 days . then board can pass an order for the recovery of the amount under dispute; or impose a penalty one time or one and half extra then the disputed amount.

4.      According to section 15. No civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter under this Act.

FORCE MAJURE PROVISION

Same as acc. To section 32 of Indian contract act 1872. Farmer shall not be liable to any damage happen to trader , sponsor due to any disaster like earthquake , flood , tsunami or any disease outbreak like covid. In simple terms trader cannot enforce for the fulfillment of the terms of agreement in the force majure situations.

FARMER’S IMMUNITY

1.       Prevention of wastage of time and money by removing intermediary body.

2.       Protection from unconditional weather under force majure clause.

3.       Total removal of tax.

LOOPHOLE / LACUNA IN THIS BILL

1.       according to definition clause of this bill farmer means  any person who produce farm product by own or by hired labor as farmer. There will be  maximum chance of tax evasion . any person with full resource can sell his agricultural  farm product excluding poultry , goatry , fishry at lowest amount by raising any reason for that in accordance with the signed agreement. But infact In a hidden manner he can sell his farm product at higher prices to same dealer . in tax assessment he can show his investment upon farming and fake loss monetary details. But actually he will be in good condition after defrauding in tax assessment by not counting actual gain of amount. #lawinroutines