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The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020

Topics Covered: Issues of buffer stocks and food security.

The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020

What to study?

For Prelims and Mains: Overview of the ordinance, implications and significance.

Aims and objectives of the ordinance:

The ordinance basically aims at creating additional trading opportunities outside the APMC market yards to help farmers get remunerative prices due to additional competition.

  • This will supplement the existing MSP procurement system which is providing stable income to farmers.
  • It will certainly pave the way for creating One India, One Agriculture Market and will lay the foundation for ensuring golden harvests for our hard working farmers.

Overview of the ordinance:

  1. The Ordinance will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.
  2. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.
  3. It also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
  4. The farmers will not be charged any cess or levy for sale of their produce under this Act.
  5. There will also be a separate dispute resolution mechanism for the farmers.


  • This is a historic-step in unlocking the vastly regulated agriculture markets in the country.
  • It will open more choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices.
  • It will also help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.

Need for- present challenges:

  • Farmers in India today suffer from various restrictions in marketing their produce.
  • There are restrictions for farmers in selling agri-produce outside the notified APMC market yards. The farmers are also restricted to sell the produce only to registered licensees of the State Governments.
  • Barriers exist in free flow of agriculture produce between various States owing to the prevalence of various APMC legislations enacted by the State Governments.


Prelims Link:

  1. What is an ordinance?
  2. What are APMCs?
  3. What is eNAM?

Mains Link:

Discuss the significance of this ordinance.

Sources: pib.