Farmer’s Produce Act 2020

Excerpts from notification

F.No. 26011/3/2020-M.II Dated : 05.06.2020
Ministry of Agriculture & Farmers Welfare
Krishi Bhawan, New Delhi

To
The Chief Secretary/ Administrator of All States/ Uts

Subject : Promulgation of Ordinance, namely “the Farmers” Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020” under clause (1) of article 123 of the Constitution of India -reg

Madam/Sir

As you are aware that Hon“ble President of India is pleased to promulgate an Ordinance namely, “the Farmers” Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020” under clause (1) of article 123 of the Constitution of India” to facilitate inter-State and intra-State trade in farmers produce. Due to Covid 19 situation there is an immediate need to improve intra-State and inter-State trade of farmers’ produce to enable farmers with freedom of choice to sell their produce at remunerative prices through competitive alternative trading channels.

2. The salient features of the Ordinance are as follows:

I). Any ‘trader’ having a Permanent Account Number (PAN) under Income Tax Act 1961 or such other document notified by Central Government, may trade in any scheduled farmers produce specified in the State APMC Act, with a farmer or another trader in a trade area;

IV). Every trader who transacts with farmers in scheduled farmers’ produce in trade area shall make payment on the same day or within maximum three working days, if procedurally so required, subject to that receipt of delivery mentioning due payment amount shall be given to farmers on the same day.

VIII). No market fee or cess or levy, by whatever name it is specified under State APMC Act or any of the State law shall be levied on any farmer or trader or electronic trading and transaction platform for trade and commerce in scheduled agriculture produce in trade area.

XIII). Central Government has power to make rules.

3. Regulated APMCs/ RMCs under State APMC Act will continue to support farmers in selling their produce, the Ordinance, 2020” aims at additionally facilitating farmers to enhance their income. The Ordinance will further motivate APMCs to be more effective and efficient in providing cost effective services to farmers for efficient marketing of their produce towards improving their income.

4. The copy of the Ordinance is enclosed herewith, It is requested to kindly promote barrier free inter-State and intra-State trade in farmers produce through implementation of Ordinance namely “the Farmers” Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020” in the interest of farming community.

Sanjay Agarwal
Secretary to the Government of India

Excerpts from notification