Impact of India’s New Farm Act, 2020 on Farmers and Markets

Abstract

At the end of September 2020, the Farmer's Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, and the Farmers (Empowerment and Protection) Price Assurance and Farm Services Bill, 2020 were approved and notified as legislation. The primary provisions of the proposed legislation are intended to assist small and marginal farmers, who have no means of either negotiating for a better price for their produce or investing in technology in order to increase farm productivity. The Agri market bill seeks to allow farmers to sell their produce to whoever they want outside 'mandis'. Even at their farm gates, everyone may purchase their produce. Although 'commission agents' of the 'mandis' and states could lose 'commissions' and 'mandi fees' respectively (the main reasons for the protests), by competition and cost-cutting on transport, farmers will get better prices by this law.