Agriculture Minister Tomar allays farmers’ fears, assures purchases at minimum support price

NEW DELHI: The Rajya Sabha passed two bills to launch landmark reforms in agricultural marketing, while agriculture minister Narendra Singh Tomar addressed the major concerns of farmers by assuring them that state purchases at the minimum support price (MSP) would continue.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 were passed on Sunday after getting the nod from the Lok Sabha earlier in the week amid protests from Opposition. The bills will replace ordinances promulgated in June.

Tomar clarified that mandis being operated under APMC Act will not stop functioning and trading will continue as before. “Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis,” he said.


Sector specialists said the changes would significantly help farmers. “These farm bills are historic. Farmers will get freedom to sell their produce to anyone and anywhere. This will act as a marketing channel parallel to APMCs giving bargaining power to farmers,” said P K Joshi, fellow at National Academy of Agriculture Science.

He said contract farming would empower farmers to engage with large buyers and insulate them from risks. “Due to prior price determination, farmers will be shielded from the rise and fall of market prices.”

Opposition parties and some farmer groups had raised questions about pricing of their produce under contract farming. They also raised concerns over disputes with big companies.

Tomar said farmers would have the power to fix the sale price and receive payments within three days. He said the government was committed to raise income of the farmers and had implemented recommendations of Swaminathan panel which proposes determining MSP by adding 50% profit to the cost of cultivation.