The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 establishes a national framework for contracted agriculture through an agreement between a farmer and a buyer prior to the production or breeding of agricultural products.   Who is a “farmer” under this Act? What is an “agricultural agreement”? The price of agricultural products can be mentioned in the agricultural agreement. In the event that such a price is subject to change, the agreement should explicitly include a guaranteed price to the farmer for his products and a clear reference for each additional amount to be paid – including a bonus or bonus “to get the farmer to the best of his ability.” This price may be related to the prevailing prices in some agricultural shipyards (which are designed to regulate markets and agricultural exchanges in accordance with various national laws) or to electronic trading and trading platforms (set up to facilitate the trade and trade of agricultural products via a network of electronic devices and internet applications). What are the rules for payments to farmers? The act provided for a three-step dispute resolution mechanism by the conciliation body, the sub-district judge and the appeal authority. The agreement was to provide for a conciliation body and a conciliation procedure for the settlement of disputes.  The law has been the subject of much criticism from farmers across the country, particularly in Punjab and Haryana. Without any regulation, the interests of farmers are neglected.   Thus, in 2006, Bihar repealed its APMC Law with the similar purpose of attracting private investment in this sector and transferred market responsibility to the relevant sub-divisions in this area.  The result is a lack of necessary marketing infrastructure, as existing infrastructure has eroded over time due to poor maintenance.1,2 In unregulated markets, farmers have faced problems such as high transaction fees and lack of information on prices and product arrival.2 The Committee of Ministers of State , formed in 2010 for agricultural marketing reform, found that complete market deregulation was not necessary. , to attract private investment.2 and institutional structure with development policy regulation, The Standing Committee on Agriculture (2018-19) recommended that the central government create marketing infrastructure in states that do not have APMC markets (i.e.
Bihar, Kerala, Manipur and some trade union regions).1, Unless otherwise mentioned in this law. an agricultural service provider may become a party to the farm contract. In this case, the role and services of the supplier must be explicitly stated in the agreement. The method used to determine the price indicated should be mentioned in the agreement. The new legislation will allow farmers to cooperate without fear of exploitation with processors, wholesalers, aggregators, wholesalers, large distributors, exporters, etc. It will transfer the risk of unpredictability from the farmer`s market to the sponsor and will also allow the farmer access to modern technology and improved inputs. It will reduce marketing costs and improve farmers` incomes. On 5 June 2020, the central government adopted three regulations: (i) the 2020 Regulation on Farmers` Trade and Trade (promotion and facilitation); (ii) the Agreement on Price Safety and Agricultural Services Protection, 2020, and (iii) the Basic Commodities Regulation (Amendment) 2020. , Regulations are intended to facilitate (i) the accessibility of agricultural products outside markets notified by the various national apmc laws (ii) to establish a framework for contract agriculture and (iii) to limit agricultural products only when retail prices rise sharply.