What are the three bills related to agriculture that created a ruckus? These are the problems of farmers and their solutions

Everything you need to know agriculture bill:Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar has described three agriculture related bills passed by Lok Sabha in the current monsoon session of Parliament as beneficial for farmers. Describing the solution of farmers’ apprehensions on these three bills, he again clarified on Saturday that procurement of crops from farmers at minimum support price (MSP) will continue as before and MSP will be announced soon for the upcoming Rabi crops. The Union Agriculture Minister said in a statement that only and only the interests of farmers have been protected in these bills. He said that the bill provides for payment to farmers within just three days of sale of agricultural produce. Tomar said that due to less duty or tax burden on marketing of agricultural products, farmers will get more price for their produce. Also Read – Amarinder Singh said – Agriculture Bill is part of the ‘kill farmers, kill Punjab’ conspiracy of the Center

Farmers and traders in Punjab, Haryana and other states too after the approval of Lok Sabha on Thursday on Farmers Produce Trade and Commerce (Promotion and Simplification) Bill 2020 and Farmers (Empowerment and Protection) Agreement on Price Assurance and Agricultural Services Bill 2020. The protest has intensified. In his mind, there are many apprehensions, including the abolition of mandis operated under the Agricultural Produce Marketing Committee Act of the states, not mentioning the MSP in the Bill, which the Union Agriculture Minister has said to address solutions through this statement. Also Read – Farmers Bill: PM Modi’s sarcasm on opposition- Farmer is watching everything, who are these middlemen …

1. The Farmers Produce Trade and Commerce (Promotion and Simplification) Bill 2020

Key Provisions: Also Read – Navjot Singh Sidhu attacks Modi government, farming Punjab’s soul, attacks on spirit are not tolerated

  • To provide freedom to the farmers to sell their produce, to create such a system where farmers and traders can easily trade products outside the agricultural produce market through other means also.
  • To provide opportunities and arrangements for farmers to sell their produce freely at any place within and outside the state.
  • Reducing the transportation cost and tax, making the farmers get more price for the product.
  • To provide more convenient mechanism for sale of produce to farmers through e-trading.
  • In addition to the mandis, freedom of trade also on farmgate, coldstorage, ware house, processing units.
  • Direct connection with farmers to processors, exporters, organized retailers so that middlemen are away.

Fears of farmers and traders:

  • The Minimum Price Support (MSP) system will end.
  • If the farmers sell the registered agricultural produce market outside the committee-mandis, then the mandis will end.
  • What will happen to a government e-trading portal like e-Naam?


  • MSP will continue as before, farmers will be able to sell their produce on MSP. Rabi’s MSP will be announced next week.
  • Mandia will not end, there will continue to be undone business. In this system, farmers will get the option to sell their produce in the market as well as other places.
  • The e-name trading system will also continue in the mandis.
  • Trade of agricultural products will increase on electronic platforms. Time will be saved with transparency.

2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Agricultural Services Bill 2020

Main Provision-

  • Connecting farmers directly with traders, companies, processing units, exporters. To fix the prices of the produce to the farmer before sowing through an agricultural agreement. Assurance of price to the farmer before sowing. Additional benefit with the lowest price when the price increases.
  • To protect the farmers from market uncertainty. The price fluctuation in the market will not adversely affect the farmer due to the price being fixed earlier.
  • To provide state-of-the-art agricultural technology, agricultural equipment and improved manure seeds to the farmers
  • Ensuring increase in farmers’ income by reducing marketing costs.
  • In case of any dispute, it should be settled at the local level within 30 days.
  • To promote research and new technology in agriculture.


  • Farmers’ favor will be weak in the contracted agricultural agreement, they will not be able to set the price
  • How will the small farmers be able to make contracts, sponsors can avoid them.
  • The farmer will be upset with this new system.
  • Large companies will benefit in the event of a dispute.


  • The farmer will have complete freedom in contract, he will sell the produce by fixing the price according to his wish. They will receive payment within maximum 3 days.
  • 10 thousand farmer producing groups are being formed in the country. These FPOs will work towards adding small farmers and giving their crops a fair profit in the market.
  • After the contract, the farmer will not be required to visit the traders. The buyer consumer can take the produce from his farm only.
  • In the event of a dispute, there will be no need to go round the court-court. There will be a system to settle the dispute at the local level.

3. The Essential Commodities (Amendment) Bill-2020

Main Provision-

  • Removal of cereals, pulses, oilseeds, onions and potatoes etc. from the list of essential commodities.
  • Except in the case of exceptions, which include a price increase of more than 50 percent, the limit for collection of these products will not be fixed.
  • This provision will encourage investment in agriculture.
  • Price stability will come, healthy competition will start.
  • The capacity of storage and processing of agricultural products will increase in the country. By increasing the storage capacity, the farmer will be able to preserve his produce and will be able to sell it at the appropriate time.

Doubts and solutions-

Apprehensions –

  • Big companies will store essential commodities. Their intervention will increase.
  • Black marketing may increase.


  • Private investors fearing excessive regulatory interventions in their business operations will be removed. This will increase private investment in agriculture.
  • Increased private investment in the field of cold storage and food processing will enable farmers to get better infrastructure.
  • The farmer will be away from the fear of crop failure. He will be able to grow crops like potato and onion with more certainty.
  • The government had all the powers of control as before if prices increased beyond a limit.
  • Inspector Raj will end, corruption will end.

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Kim Diaz

Kim recently joined the team, and she writes for the Headline column of the website. She has done major in English, and a having a diploma in Journalism.

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