Cabinet Decision to give Historic Boost to Rural India :

More than 65% population of India live in rural India and 58% population depends on the agriculture and allied sectors. But Indian farmer facing major problems such as disguised unemployment, middleman, lack of cold storage, market, trade barriers, etc.

On 3rd June, 2020, Honorable Prime Minister Narendra Modi chaired Cabinet meeting to give Landmark and historic decision, which will be transforming the agriculture sector and benefiting India's farmers in long terms.

Three major reforms to give Historic Boost to rural India -

1. Historical amendment to Essential Commodities Act, 1955 (ECA) :

The Union Cabinet has approved historical amendment to the 65 years old Essential Commodities Act, this visionary step transforming agriculture and increasing farmers' income.

Issues -

* Under the ECA, farmers have been unable to get better price due to lack of investment in cold storage, warehouses, processing and export as the entrepreneurial spirit gets dampened.

* Farmers face huge losses, when there are surplus harvests, especially of perishable commodities.

* Lack of processing facilities increase agricultural wastage.

* Private investors interference in government regulations (middleman issue).

For these issues, Government amended ECA in following ways -

* The amendment of ECA,  commodities like cereals, pulses, oil seeds, edible oil, onion and potatoes will be remove from the list of essential commodities.

* It remove the interferences of private investors in regulatory bodies.

* The freedom to produce, hold, move, distribute and supply will lead to enhancing of economies of scale and attract private sectors / foreign direct investment in to agriculture sector.

* It will boost infrastructure development.

* Modernization of food supply chain.

How to safeguarding interest of Consumers ?

* By liberalising the regulation, it has also ensured that interest of consumers  are safeguarded.

* These Agricultural foodstuffs can be regulated in the situation like as war, famine, extraordinary price rise and natural calamity.

* Expoter remain exempted from stock limits imposition that will not discouraging investment in agriculture.

The amendment will benefits both farmers and consumers. It will create positive competitive market environment and also prevent wastage of Agri-produce that happen due to lack of storage facilities.

2. Barrier-free trade in Agriculture Produce :

The Union Cabinet approved 'The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020'.

Issues - 

* Restrictions in marketing of the farmers produce.

* Restrictive rules for farmers in selling agri-produce outside they notified APMC (Agriculture Produce Market Committee) Market.

* Farmers sell their produce only to the registered licensee of the State Government.

* Farm produce not flow freely between various State due to restrictive APMC legislation.

 Advantage :

* By this ordinance farmers and traders will enjoy freedom of choice of sale and purchase of agri produce. 

* It will promote barrier-free inter and intra State trade and commerce from APMC legislation.

* It is historic step for deregulation of agricultural market in the country.

* It will provide better price for farm produce. Regions of surplus produce to get better price from consumers of regions with shortage.

* It will also promote e-trading.

* The farmers will not be charged any cess or levy for sale of their produce under this Act. Further there will be a separate dispute resolution mechanism for the farmers.

One Nation, One Agriculture Market :

The ordinance basically aims at creating additional trading opportunity outside the APMC market yards to help farmers get remunerative price due to additional competition. This will supplement the existing MSP procurement system which is providing stable income to farmers.

It will creating One India, One Agriculture Market and foundation for ensuring golden harvest for our hardworking farmers.

3. Farmers empowered to engage with processors, aggregators, wholesalers, large retailers, exporters :

The Union Cabinet approved 'The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Service Ordinance, 2020'.

Issues -

* Indian Agricultural land is fragmented due to small holding size.

* Agriculture depending on weather conditions.

* Unpredictable market.

* Uncertainty in productivity.

Advantage :

* The ordinance will empower farmers for engaging with processors, wholesalers, aggregators, largest retailers, exporters, etc., on a level playing field without any fear of exploitation. 

* Use of modern technology and better inputs shifting risk of market from the farmers to the sponsor. It will reduce cost of marketing and improve income of farmers.

* It will attract private sector investment for building Supply chain for supply of Indian farm produce to global markets. 

* Farmers are using technology for high value agriculture and get ready market for such produce.
* It will eliminating middleman exploitation and farmers get the real price.
* Sale, lease or mortgage of farmers' land is totally prohibited and farmers' land is also protected against any recovery.
* Provide real time redressal mechanism.

Government committed to the cause of farmer welfare :
Number of steps were announces a part of the Atmanirbhar Bharat Abhiyaan to provide a boost to those engaged in agriculture and allied activities. These include provision of concessional credit through Kisan Credit Cards, financing facility for agri-infra Project, Pradhan Mantri Matsya Sampada Yojana and other measures to strengthen fisheries, vaccination against Foot and Mouth Disease and Brucellosis, Herbal Cultivation promotion, boost to beekeeping, Operation Green etc.
Under PM KISAN, over 9.54 crore farmer families (as on first June 2020) have benefited and an amount of Rs. 19,515 crore has been distributed so far during the lockdown period. An amount of Rs. 8090 crore has been paid during lockdown period under PMFBY.

"India got independence in 1947 but Country's farmers may freed soon !"

References 
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