Being a society having a heritage of rich Agrarian culture India depends on the agricultural products irrespective of modern industries and technological developments. Though our country has various agricultural development schemes the farmer is always neglected financially for the agricultural products. In order for the upliftment of farmers, The Farmers Produce Trade and Commerce (promotion and Facilitation) Act 2020 was enacted on 24th September 2020. The Act contains 20 sections in five chapters. The act focus on the trading of farm produce accustomed to the modern trading methods as well as the conventional trading system.
The act clearly states the opportunities of interstate and intra state trading of farmers produce through electronic or competitive alternative trading channels that is a landmark step in the agricultural economy of the country. It also ensures the freedom of choice of purchase and sale of the products by the farmer and the trader.
Chapter two of the act elaborately states the freedom of the farmer for trading interstate and intra state subject to the provisions of the act. Section four states the scheduled farmers produce as per the act and the exception of the section four is applicable to traders other than farmer producer organization and agricultural society or any one has permanent account number as per Income Tax Act or with documents notified by the Central Government.
Section five of the Act put forth the conditions of electronic trading including the guide lines of fair trade practice of fees and technical parameters of logistics arrangements timely payment, quality assessments, usage of guidelines in local languages where trade is to be performed. Section 7 states the price information and market intelligence system by the Central Government from time to time to impart in the region of trade to be functioned.
Chapter three deals with the dispute resolution between the farmer and the trader to the sub divisional magistrate for reference of such dispute in a conciliation board. Section 9 states the consequences of breach of standard or norms to be followed in electronic trading and transaction platforms where suspension and cancellation of right to operate on electronics platforms can be imposed subject to the provisions of the act. Appeal against cancellation of Registration can be file before the officer not below the rank of the joint secretary and any appeal filed shall be disposed within the period of ninety days from the date of filing of the appeal.
Chapter 5 section 12 of the act specifies the power of central government to make directions, orders or guidelines for implementing the provisions of the act from time to time.
Any transactions taken as per the provisions of the Stock Exchange and Clearing Corporations recognized under the Securities Contract Regulation Act 1956 is exempted under this act as per section 17.
Section 19 of the Act deals with the Central Government’s power to remove any difficulties for the implementation of the provisions of this Act. The Act is undoubtedly a landmark Act that made a different separate frame work of trade unlike the conventional modes of trading.