Farmers Empowerment and Protection Agreement on Price Assurance and Farm Services Act 2020

On September 27th, 2020, the Indian government passed the Farmers` Empowerment and Protection Agreement on Price Assurance and Farm Services Act 2020. This act aims to empower farmers by allowing them to directly contract with buyers, eliminating the need for intermediaries that often leave farmers vulnerable to exploitation.

The Act allows the farmers to enter into agreements with buyers prior to the production of crops. Under these agreements, buyers will purchase the crops from farmers at an agreed-upon price, which eliminates the need for farmers to negotiate prices after the harvest. This price assurance helps farmers to plan their finances and prevent exploitation by middlemen.

Furthermore, the Act also provides for the creation of a dispute resolution mechanism. If any disputes arise between farmers and buyers, they can approach a Conciliation Board for resolution. The Board will have the power to impose penalties on buyers who violate the terms of the agreement, providing farmers with additional protection.

The Farmers` Empowerment and Protection Agreement on Price Assurance and Farm Services Act 2020 also encourages the development of technology-driven farm services. Companies can now offer contract farming services to farmers and provide them with technology-driven inputs, machinery, and credit facilities. This provision allows for the transfer of technology and expertise to farmers, enabling them to increase their productivity and improve their income.

The Act promotes the development of agribusiness and creates a conducive environment for farmers to engage in direct marketing. By eliminating intermediaries, farmers can secure better prices for their produce and improve their bargaining power.

The Farmers` Empowerment and Protection Agreement on Price Assurance and Farm Services Act 2020 has been met with some criticism. Critics argue that the Act will lead to the corporatization of agriculture, which could lead to the exploitation of small farmers. However, the government has emphasized that the Act will not impact the existing minimum support price system, and it is committed to ensuring that farmers are not exploited by big corporations.

In conclusion, the Farmers` Empowerment and Protection Agreement on Price Assurance and Farm Services Act 2020 is a significant step towards empowering farmers and protecting their interests. The Act provides farmers with price assurance, protects them from exploitation by middlemen, and promotes the development of technology-driven farm services. While there are concerns about its impact, the government`s commitment to safeguarding farmers` interests is reassuring.