India is an agricultural country, agriculture is the primary source of livelihood for more than 60% of the population of rural India. India is not a self-sufficient nation in the terms of food production but also one of the highest producers of grains like wheat & rice.

The term ‘farmers’ defined under sec. 2 (e) of the Farmers (Empowerment & protection) Agreement on price assurance & farm services Act, 2020 -

“Farmer means an individual engaged in production of farming produce by self or by hired labour or otherwise & includes the farmer producer organizations”.

There is a continuous farmer protest against the three farmer bills passed by the Indian Parliament in 2020. These Acts are – 

  1. The Farmers produce Trade & Commerce (Promotion & Facilitation) Act, 2020.

  2. The Farmers (Empowerment & Protection) Agreement of price Assurance & Farm Services Bill, 2020.

  3. The Essential Commodities (Amendment) Bill, 2020.

  1. AIM:-

The aim of the farmer bills is to give freedom from the APMC market to farmers. The Farmers are directly entering into contracts with buyers, the private entities can invest in agriculture also.

Brief provisions of all the 3 Farm Bills are as follows:-


On 5th June, 2020, the Farmers produce Trade & Commerce (Promotion & Facilitation) Act, 2020 was come into force through an ordinance. This Act permits trade areas outside the APMC (Agricultural Produce Market Committee) i.e., both intra-state and between state (inter-state) trade of agricultural products.

Provisions of the Act:-

  1. Trade area outside APMC – 

This Act provides farmers to sell their products outside the APMC. Before this Act farmers were bound to sell their products only in APMC.

  1. Intra-state & Inter State –

The Act permits intra and between state (inter-state) trades of farmers produce beyond the actual premises of APMC.

  1. Online Trading –

The Act allows farmers to trade through electronic mode. It will also provide online buying & selling of agricultural products through electronics devices & internet. It is very easy for all the customers and farmers also without going to market physically.

  1. No state taxes –

Act likewise provides that, state can’t collect any taxes or cess on farmers, traders and electronic trading platforms for trading farmers produce in an outside trade area.

Merits of the Act:-

  1. Business to Business (B2B) Possibilities:-

B2B is a transaction or business conducted between one farmer and another, such as wholesaler and retailer. Under this Act, big companies will purchase raw materials from farmers to be used in their manufacturing process.

  1. Inter State :-

Under this Act farmers can produce agricultural products to another state also. Before this act farmers were restricted to sell their products only in APMC.

  1. Innovations:-

Through this act, the young generation can participate in farming and take it as a new career opportunity.


This Act gives national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produces.

Provisions of the Act:-

  1. Farming Agreement –

Under this agreement, farmers may enter into a written agreement of any farming.

The ordinance provides for a farming agreement between a farmer and a purchaser prior to the production or rearing of any farm produce.

  1. Minimum period of farming –

The base period of farming agreement shall be for one harvest season or one production cycle of livestock.

  1. Maximum Period –

The maximum period of farming agreement shall be for five years and mutually decided by farmer and sponsor.

  1. Dispute Settlement Authority – 

As per ordinance, it provides 3 tier dispute settlement mechanism-

  • Conciliation Board -

The Conciliation Board should have a fair and balanced representation of parties to the agreement.

  • Sub-divisional Magistrate -

After 30 days, the matter came to SDO for settlement.

  • Appellate Authority -

The parties will have the option to appeal to an Appellate Authority against the decision of the Magistrate.

Both Magistrate and appellate authority will be required to dispose of a dispute within 30 days from the receipt of application.

Merits of the Act:-

  1. Crop Pattern -

Through this Act, the traditional way of agriculture crop patterns are changed. This is a very important provision of this Act. Farmers can change their crop pattern as per new trends and earn more profit.

  1. Good Competition  -

Under this Act, the competition between the farmers will increase day by day. And new innovations come through new technology. 


The essential commodities Act was passed 1st time in 1955 by the Pandit Jawaharlal Nehru government. This Act was modified by The Essential Commodities (Amendment) Act, 2020 as part of the 2020 Indians Farm reforms.

Provisions of the Act:-

  1. Regulation of Food items -

Essential Commodities Act, 1955 empowers the central government to assign certain commodities such As food items, fertilizers and petroleum products as essential commodities. The statute gives that the central government may regulate the supply of certain food items including cereals, pulses, potatoes, onions, edible oil seeds and oils, only under remarkable conditions.

These include war, famine, extraordinary price rise and natural calamity of grave nature.

  1. Stock Limit -

The ordinance requires that imposition of any stock limit on agriculture produce must be based on price rise. A stock limit may be imposed if there –

  • A 100% expansion in the retail price of agricultural produce and 

  • 50% increase in the retail price of non-perishable agriculture food items. 

  1. Power of Central Government -

The Central government regulates production, supply and distribution of a whole host of commodities.

Advantages of this Act:-

  1. Farmers can sell their agricultural products within the state or anywhere in the country and there is no restriction on this as well. As a result the farmers can get a higher price for their produce from merchants outside their state.

  2. No Taxes by state -

Farmers have got new opportunities with freedom to sell their produce outside the APMC without any taxes. 

  1. Penalty -

The Act also provides heavy penalty for violating the provisions prescribed in it.

  1. No restriction on any traders -

There is no requirement for any kind of license for dealers to buy produce in trade areas outside the APMC mandi. This provides more selling options to the farmers.

Disadvantages of this Act:-

  1. APMC Market -

Farmers believe that the new farm laws 2020 are brought to destroy APMC. This Act shall result in loss of revenues for states as they would be barred from the collection of “mandi fees” if the farmer started selling their produce outside APMC markets.

The farmers allege that the mandis operated under the APMC law will be abrogated because of this Act. When these mandis shut down, the farmers will be compelled to sell the crop to corporate companies at lesser cost.

  1. No regulation (PAN) -

There is no regulation on license and no need to register for buyers farmers will be presented to chance of fraud because of passage of individuals without license or registration.

  1. Judicial Support -

Under this Act, Dispute Settlement Authorities are established and give power to sub-divisional magistrate. But not given any power to the judiciary for farmer support.

  1. New Oligopoly -

Under this Act, Farmers believe that the rights of markets goes to only one large seller group and it creates an oligopoly market. 

  1. No Remedy -

Under The Farmers (Empowerment & Protection) Agreement of price Assurance & Farm Services Act, 2020 not accommodate for any remedies when companies cancel agreement or there is delay in taking delivery of produce.


Every Act, Ordinance or Bill which is enacted by the legislation has some pros and cons. For overcoming that pros and cons, the government has to set proper machinery and overcome it. The public authority should form a legitimate mechanism for contract cultivation so no farmer is exploited by big greedy corporates. To solve disputes between farmers and merchants. The public authority ought to set up an alternative administrative regulatory body rather than a Sub-Divisional Magistrate. The MSP framework is defective and surprisingly however the public authority as of recently said that they are not revoking MSP yet they need to address the fact that only 6% of Farmers are getting benefits. The public authority should execute this scheme more effectively by spreading awareness with the assistance of Gram panchayat so that the smallest of farmers will think about this and will get the advantage. Farmers in our nation are not joined together. Government has given adjudication power only to executive wings that is SDM, it is necessary to establish Agricultural Tribunal as an adjudication judicial authority and High Court and Supreme Court as an appellate authority for farm bills related dispute. With a minimum period of appeal.

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