Page 33 - Putting Farmers First

Contract farming was already informal practice in many
states. In Punjab, a separate Contract Farming Act has
existed since 2013.

High-Powered Committee of Chief Ministers for
‘Transformation of Indian Agriculture’ was set up in June,
2019, to implement reforms and know the intent of
states.
Problems faced by farmers due to lack of marketing
reforms were also noted by Parliamentary Standing
Committees on Agriculture. Their recommendations
were no different from those made over the past two
decades.

As is obvious from this chronology, the extensive
consultation process on Agricultural Marketing Reforms
had spread over two decades, during which different
governments headed by different political parties had
all proceeded in the same direction and recommended
similar things.

As a culmination of this process, on 3 June 2020, The
Union Cabinet, after its 21st May consultation with
States on Ordinances, approved the promulgation of
two Ordinances:

The Farmers’ Produce Trade and Commerce
(Promotion and Facilitation) Ordinance, 2020

The Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm Services
Ordinance, 2020.

After promulgating the Ordinances, the Government
of India worked to sensitize farming communities,
FPOs and Cooperatives etc, to raise awareness on the
advantages of ‘One Nation One Market’ and explain the
Ordinances’ benefits.

After debate and discussion, Lok Sabha passed both
the bills on 17th September, 2020 and Rajya Sabha on
20th September, 2020.

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