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The Farm Bill 2020| Explained


The Farm Bill 2020


The Farm Bill 2020 aimed at the transformation of agriculture and raising farmers. It aimed to help the farmers to increase their income.


These Farm ordinances passed in June 2020 under the Atmanirbhar Bharat Abhiyan. These ordinances passed by the Government Of India.


The Farm Bill 2020 aimed to provide a boost to the farmers who engaged in agriculture activities.

The Farm Bill 2020| Key Highlights of the Bill
Farmers in the agriculture field



The Farm Bill 2020: Highlights


There were a total of 3 Farm bills passed by the Government of India mentioned below-
1. The Farmer's Produce Trade and Commerce (Promotion and facilitation) Bill, 2020

  • The purpose of the bill is to open the way for the marketing of agricultural activities outside APMCs for the farmers.
  • The bill also helps to remove the hurdle in inter-state trade.
  • Earlier, the production from the farmers sold in mandis, these mandis run by Agriculture Produce Marketing Committees (APMCs) and in mandis licensed middlemen to buy from farmers and sell these to the retailers and big traders to get the commission.

Positives of the Bill

  • Under this bill, Farmers will get the option to sell their products either in Mandis or markets. It helps them to increase their income due to the competition in price.
  • This will help to generate new jobs in the rural area by the small and medium Entrepreneurs and the Agri-firms.
  • This will help the farmers to exchange their goods with good value. Apart from this, people will get motivation and knowledge to become Entrepreneurs.

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


The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 aimed at providing the facility of contract farming, where a buyer contracts to buy the crop at a certain price at the beginning of a season to make the farmer risk free.

Positives of the Bill

  • The bill will empower the farmers by giving them a pre-agreed price for the crop irrespective of uncertainty and fluctuations of markets.
  • "Contract Farming", will open the gate for the Agri-firms, exporters, or large scale buyers. This will change conventional farming.
  • The "Contract Farming" will create interest to enter farming to those people who were not interested earlier.

The Essentials Commodities (Amendment) Bill, 2020.


The Essential Commodities Bill aims to free the business activities of agricultural commodities like cereals, pulses, oilseeds, onions, and potatoes from the rules and controls.
Positives of the Bill

  • The Farm bill will also attract private players and (FDI) into the agriculture sector.
  • The bill is going to help the food processing sector by in the modernization of the food supply chain.
  • It will promote the solar-based cold storages in the villages where electricity is not so frequent. It will reduce the post-harvest decay of the product.