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Motilal Oswal: Agriculture Reforms - Structurally Positive Move   

Motilal Oswal: Agriculture Reforms - Structurally Positive Move

A farmer checks his wheat crop in a field on a farm in Gunnedah, Australia. (Photographer: David Gray/Bloomberg)
A farmer checks his wheat crop in a field on a farm in Gunnedah, Australia. (Photographer: David Gray/Bloomberg)

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Motilal Oswal Report

In the current monsoon session, the Parliament passed two key bills related to agriculture that addresses key issues faced by farmers. We expect the two bills to be structurally positive for farmers over the long term.

In this note we have tried to analyze the purpose of the two Bills, its benefits and concerns of farmers. Key insights highlighted below -

Farmers’ Produce Trade and Commerce Bill, 2020.

This Bill seeks to provide the creation of an ecosystem for farmers and traders, wherein both parties could enjoy freedom of choice relating to sale and purchase of farmers' produce.

The Bill would facilitate remunerative prices through competitive alternative trading channels to promote efficient, transparent and barrier-free interstate/intra-state trade and commerce of farmers' produce outside physical premises of markets or deemed markets notified under various State Agricultural Produce Market Legislations.

It would also provide a facilitative framework for electronic trading and for matters connected therewith or incidental thereto.

Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020.

The Bill seeks to provide a national framework on farming agreements that would protect and empower farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce.

This would be done at a mutually agreed remunerative pricing framework in a fair and transparent manner and for matters connected therewith or incidental thereto.

Click on the attachment to read the full report:

Motilal Oswal Agri Reforms.pdf

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