Soon, Central Law for Farmers to Sell Produce at 'Attractive Prices', Legal Support Will be Given Too

New Delhi: Finance Minister Nirmala Sitharaman on Friday announced governance and administrative reforms meant to help farmers in selling their produce at attractive prices.

A Central law will be formulated to provide adequate choices to farmers to sell produce at attractive prices, for barrier-free inter-state trade and to setup a framework for e-trading of agriculture produce.

The Centre in its third tranche of announcements also proposed amendments to essential commodities act to enable better price realisation for farmers. As per the amendment, agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potatoes will be deregulated.

Stock limit to be imposed under very exceptional circumstances like national calamities, famines with surge in prices. However, no such stock limit capacity will be applicable for processors or value chain participants, subject to their installed capacity or to any exporter subject to the export demand.

Finance Minister Sitharaman also proposed a facilitative legal framework to enable farmers for engaging with processors, aggregators, large retailers, exporters in a fair and transparent manner.

Risk mitigation for farmers, assured returns and quality standardisation shall form integral part of the framework. "This amendment was brought in to let farmers have a fair idea of price of their produce even before sowing," said the Finance Minister.

The announcements are part of Aatma Nirbhar Bharat Abhiyan launched by Prime Minister Narendra Modi on Tuesday.