Page 24 - Putting Farmers First

MYTH AND REALITY The Farmers’ Produce Trade and Commerce (Promotion and Facilitation),
Act, 2020 – Freedom to Sell Farm Produce Across India

S. No MYTH REALITY
1 a. “Farmers will not get MSP system stays. In fact, the Modi
the MSP” government has increased MSPs
b. “It may eventually multiple times and also procured
more from farmers at MSP than any
end MSP based past government
procurement system”
c. “MSP operations will The new law will not affect
discontinue” MSPs adversely. MSP purchase
on agricultural produce is done
through State Agencies and there is
no change in this due to this law
MSP procurement from farmers
is the top priority of the present
Government and it will continue to
be so

2 “Trade & Commerce Act This Act is not intended to replace
will replace the State the State APMC Act and does not
APMC Act and affect affect the functioning of the APMCs
the functioning of the APMCs will continue to regulate the
APMCs” marketing of agricultural produce
within the physical boundaries of
market yards. They can levy market
fee within physical mandi as per
their regulations
The Act only provides farmers with
additional marketing opportunities
outside existing APMCs
Both the laws will co-exist for the
common interest of farmers
3 a. “Infringement into Inter-State trade falls within Entry
the States powers of 42 of Union List of the Constitution
making Legislation” of India
b. “Encroachment in Though intra-State trade falls
State Powers” within Entry 26 of State List, the
same is subject to Entry 33 of
Concurrent List of Constitution of
India
Central government is fully
competent and empowered to
legislate here
Hence, no encroachment in State
powers

17 | Putting Farmers First