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FPTC Act and Farm Acts - Coggle Diagram
FPTC Act and Farm Acts
Intro
CI
Farmers’ Produce Trading and Commerce Act 2020
FPTC Act
gives farmers
fredom to sell and buy
farm produce
at any place in the country
in APMC markets
or outside mandated area
to any trader
Farm Acts
Important to address
concern of various
stakeholders
include farmers and SG
MB
BP/GE/IS
ACT allows
transactions on electronic platforms
to promote e-commerce
in agriculture trade
only put pressure
on APMC markets
to become competitive
FPTC real threat
in some states to APMC mandis
and their business
from excessive and unjustified charges
levied under APMC acts
Farm Acts Beneifts
Many private markets
will be established
Middlemen would disappear
Farmgate prices would rise
Farm Acts issues
Despite such legislative changes
no sig private investment
has flowed in
to establish private market
Private Markets
emerged in for some crops
no means widespread
Poor Private Investment reasons
presence of high transaction cost
incur considerable costs
in opening collection centres
More no of marginal farmers
higher costs will be
Corporate retail chains
face additional costs
in urban sales
and storage
risk of perishability
retail chains
prefer purchasing
bulk quantities of fruits and vegetables
from mandis
rather than
directly from farmers
No assurance
farmers would receive
higher price in private markets
Mandi Tax Revenues
used to construct rural roads
run medical
and veterinary dispensaries
supply drinking water
improve sanitation
expand rural electrification
provide relief to farmers during calamities
rural investments
adversely affect
if mandis are weakened
MSP
Revision of MSPs
Input and labour costs
rising sharply in agriculture
necessitates
regular upward
revision of MSPs
keep pace with costs of living
Govt
has not yet agreed to fix
MSP @ 50% above cost of production
As a result
farmers continue
suffer a price loss of 200 to 500 rupees
per quintal in many crops
Many Policy signals
point to strategic design
to weaken the MSPs
Concerns
Farmers believe
farmgate prices
would fall with intensification
corporate presence
in agricultural markets
if mandis weaken
private markets
with no commitment to MSPs expand
fear of gradual erosion
to remunerative price
do not sufficiently
replace mandis
fear of unscrupulous
and unregulated traders
Way Ahead
Need to Increase
density of mandis
expansion of investment
in mandis infrastructure
spread of MSP system
to more regions and crops
Hand-in-Hand
with universalisation PDS
as affordable source of food
for poor
APMC
need internal reforms
ease the entry of new players
reduce trader collusion
and link them up
with national e-trading platforms
Introduction
unified national licences for traders
and single point levy of market fees
Parliament
Stable policy-making needs
broad agreement on
the benefits of the policy
such consensus
built throught conversation
with stakeholders
revitalise its committees
enable wider public participation
insist
every bill upon in a committee
much like British Parliament does
Need to perform
its function as deliberative body
that enables
compromises to assuage concerns
Bills enacted
through ordinance
to replace the ordinance
introduced in Lok Sabha
and passed within 3days
without being reffered to
Standing Committee
REP/REC- Farm Acts
CACP
recommended to govt
open-ended procurement
of food grains should end
these policy stances
set alarm bells
among farmers