This article has been written by Shubham Khandelwal currently pursuing BBA.LLB from FIMT, IP University. In the below-given article, you’ll all get to know the necessary information about the recently passed “Agriculture Bills” of 2020. Picture credits to


The Indian Parliament had passed three agriculture bills—

  • Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020,  
  • Farmers (Empowerment and Protection) Agreement of Price Assurance, Farm Services Bill, 2020, and the
  • Essential Commodities (Amendment) Bill, 2020—during its monsoon session culminating on 23 September.

 The contentious bills that awaited the President’s log off are now passed amid an uproar by the opposition party leaders and farmer groups alike. Amid the stiff opposition, there have also been voices that have begun in support of the bills with some stating that they might “unshackle” the workforce engaged within the agriculture sector.

To cut through the noise, here are a couple of key points from each bill that specify the changes proposed by them to the prevailing agriculture laws within the country.


  • This bill permits ranchers to participate in the exchange of their agrarian produce outside the physical business sectors informed under different state Agricultural Produce Marketing Committee laws (APMC acts). Otherwise called the ‘APMC Bypass Bill’, it will abrogate all the state-level APMC acts.
  • Advances hindrance free intra-state and between state exchange of rancher’s produce.
  • Proposes an electronic exchanging stage for immediate and internet exchanging of produce. Substances that can set up such stages incorporate organizations, association firms, or social orders.
  • Permits ranchers the opportunity to exchange anyplace outside state-advised APMC markets, and this incorporates permitting exchange at ranch entryways, distribution centers, cold stockpiles, etc.
  • Precludes state governments or APMCs from exacting expenses, cess, or some other charge on farmers produce.

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

  • The bill tries to furnish ranchers with a structure to take part in contract cultivating, where ranchers can go into an immediate concurrence with a purchaser (before planting season) to offer the product to them at pre-decided costs.
  • Elements that may reach accords with ranchers to purchase agrarian produce are characterized as “supports” and can incorporate people, organizations, association firms, restricted obligation gatherings, and social orders.
  • The bill accommodates setting up cultivating arrangements among ranchers and supporters. Any outsiders engaged with the exchange (like aggregators) should be unequivocally referenced in the understanding. Enrollment specialists can be built up by state governments to accommodate the electronic library of cultivating arrangements.
  • Arrangements can cover commonly concurred terms among ranchers and supports, and the terms can cover gracefully, quality, guidelines, cost, just as homestead administrations. These incorporate gracefully of seeds, feed, grub, agro-synthetic substances, apparatus and innovation, non-compound agro-inputs, and other cultivating inputs.
  • Arrangements must have a base term of one editing season or one creation pattern of domesticated animals. The most extreme length can be five years. For creation cycles past five years, the time of understanding can be commonly chosen by the rancher and support.
  • The price tag of the cultivating produce—including the techniques for deciding cost—might be included the understanding. On the off chance that the cost is dependent upon varieties, the understanding must incorporate an ensured cost to be paid just as clear references for any extra sums the rancher may get, similar to reward or premium.
  • There is no notice of the least help value (MSP) that purchasers need to offer to ranchers.
  • Conveyance of ranchers’ produce might be embraced by either party inside the concurred period. Supporters are subject to review the nature of items according to the arrangement, else they will be considered to have examined the create and need to acknowledge the conveyance inside the concurred period.
  • If there should be an occurrence of seed creation, supports are needed to pay at any rate 66% of the concurred sum at the hour of conveyance, and the rest of the sum to be paid after due accreditation inside 30 days of the date of conveyance. Concerning different cases, the whole sum must be paid at the hour of conveyance and a receipt slip must be given with the subtleties of the deal.
  • Produce created under cultivating arrangements are absolved from any state demonstrations pointed toward directing the deal and acquisition of cultivating produce, along these lines ruling out states to force MSPs on such produce. Such arrangements additionally excluded the support from any stock-limit commitments pertinent under the Essential Commodities Act, 1955. Stock-limits are a technique for forestalling the accumulating of horticultural produce.
  • Accommodates a three-level debate settlement component: the mollification board—containing delegates of gatherings to the arrangement, the sub-divisional officer, and re-appraising power.


  • An alteration to the Essential Commodities Act, 1955, this bill looks to limit the forces of the administration as for creation, gracefully, and conveyance of certain key products.
  • The bill eliminates grains, beats, oilseeds, eatable oils, onion, and potatoes from the rundown of fundamental products.
  • The government can force stock holding limits and direct the costs for the above items—under the Essential Commodities, 1955—just under outstanding conditions. These incorporate war, starvation, remarkable value rise, and characteristic disaster of grave nature.
  • Stock cutoff points on cultivating produce to be founded on value ascend in the market. They might be forced just if there is: (I) a 100% expansion in retail cost of plant produce, and (ii) a 50 percent expansion in the retail cost of durable farming food things. The expansion is to be determined over the cost winning during the first a year, or the normal retail cost in the course of the most recent five years, whichever is lower.
  • The bill targets eliminating fears of private speculators of administrative impact in their business tasks.
  • Offers opportunity to deliver, hold, move, circulate, and flexibly produce, prompting tackling private area/unfamiliar direct interest in horticultural foundation.

Worries of Farmers

  • Ranchers dread they will no longer get paid at MSP, they need beneficial deals as least help costs (MSPs) to be a legitimate right.
  • The ranchers request a different statute to give an unmistakable arrangement that if any office purchases the yield of the rancher beneath the MSP, at that point legitimate move will be made against it
  • Commission specialists are worried that they will lose their bonuses in mandis and persuasive operators would prefer not to lose hold over the ranchers.
  • As per a Punjab Agricultural University study, there is more than 12 lakh cultivating families in Punjab and 28,000 enrolled commission specialists. A huge aspect of the state’s economy lays on reserves mixed by focal acquirement offices, for example, the Food Corporation of India (FCI).
  • Presently, nonconformists dread the FCI will not, at this point have the option to obtain from the state mandis, which will ransack the go-between/commission specialist/arhatiya of his 2.5 percent bonus. The state itself will lose the 6 percent commission that is used to charge on the acquisition office.
  • Ranchers accept that the bills are intended to help huge corporate houses at the expense of their salary.
  • Ranchers state that the enactment will prompt a replication of old structures outside mandis and make two market spaces with totally various arrangements of rules.

Who is Protesting?

The Farmers of Punjab have organized a three-day protest against the bills. Badal, too, tendered her resignation after the Bills were passed. Opposition parties, including TMC, Congress, DMK, and BSP, opposed the agriculture sector reform bills, saying they were against the interests of small and marginal farmers. Congress upped its ante against the Modi government, terming the move a conspiracy to defeat the revolution. Slamming the govt, Congress leader Gaurav Gogoi said: “This government has been eyeing, how they will take the farmers’ land to profit their capitalist friends, whether is that the Land Acquisition Act, whether within the industrial system through weakening the labor courts and now this three-pronged attack on the Indian agricultural system through the 2 bills on farming – one associated with APMC, the opposite one is said to contract to farm and therefore the third bill which is on essential commodities… a three-pronged attack on the Indian agricultural system through the 2 bills on farming – one associated with APMC, the opposite one is said to contract to farm and therefore the third bill which is on essential commodities… a three-pronged attack on the Indian farmers.”

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