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Key agricultural reforms cleared
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- Union Cabinet cleared 3 ordinances for lifting restrictions on key commodities
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- Gave farmer freedom to sell their produce directly or through e-commerce platforms
- Key commodities include cereals, pulses, onion and potato
- Will result into amendment of Essential Commodities Act 1955
- Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020
- intended for “barrier-free inter-state and intra-state trade” in agriculture produce
- trade and commerce outside the premises of markets covered by State Agricultural Produce Marketing legislation.
- The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
- for eliminating intermediaries
- facilitate direct contract of farmers with processors, aggregators, wholesalers, large retailers and exporters
- No State can impose mandi tax on these contracts
- No State act will apply to these contracts
- Still, Government has power to impose regulations on agricultural commodities in the background of “war, famine, extraordinary price rise and natural calamity”