Instaling Farming 202010/28/2023 ![]() These three bills address different aspects of agricultural marketing – one bill relaxes the restrictions on governing procurement and the sale of farm produce the second relaxes the restrictions for stocking of agricultural products under the Essential Commodities Act (ECA), 1955 and the third introduces a special legislation for facilitating the contract farming schemes. These are expected to enable farmers to sell their products in a competitive market on the one hand and to enhance the supply of food to the consumers, on the other. Three ordinances were passed in both houses of the Parliament in September in the midst of the COVID-19-lockdown. Improving smallholders’ access to the market, both locally and internationally, could be one of the important strategies which is needed to enhance agricultural productivity, farmers’ profit and to reduce poverty. As a result, smallholders are unable to access input services and markets for their produce, especially in the case of fruits, vegetables and other high-value crops (cultivation of which involves higher risks). Farmers who depend directly on agriculture as cultivators (more than 85 percent are small and marginal landholders who have less than 3 hectares of land) are placed at the bottom of the global value-chains. 1 This change is guided by the misplaced notion of the latter ‘crowding out’, the former. Since the time India adopted economic liberalization, government policies have shifted from domestic-oriented to export/market-oriented strategies, focusing on the promotion of private sector participation (and investment) in the agriculture sector and the withdrawal of public investment. ![]() Contract Farming and Farmers’ Empowerment & Protection Bill 2020
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