THE FARMERS’PRODUCE TRADEAND COMMERCE (PROMOTION AND FACILITATION)ACT, 2020

PART II — Section 1

PUBLISHED BY AUTHORITY

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 27th September, 2020/Asvina 5, 1942 (Saka)

The following Act of Parliament received the assent of the President on the

24th September, 2020 and is hereby published for general information:—

THE FARMERS’PRODUCE TRADEAND COMMERCE (PROMOTION AND FACILITATION)ACT, 2020

NO. 21OF 2020

An Act to provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce which facilitates remunerative prices through competitive alternative trading channels; to promote efficient, transparent and barrier-free inter-State and intra-State trade and commerce of farmers’ produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations; to provide a facilitative framework or electronic trading and for matters connected therewith or incidental thereto.

BEit enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—

CHAPTER I P RELIMINARY

1. (1) This Act may be called the Farmers’ Produce Trade and Commerce (PromotionShort title and Facilitation) Act, 2020. commencement.

2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—(2) It shall be deemed to have come into force on the 5th day of June, 2020.

Definitions.

2. In this Act, unless the context otherwise requires,––

(a) “electronic trading and transaction platform” means a platform set up to facilitate direct and online buying and selling for conduct of trade and commerce of farmers’ produce through a network of electronic devices and internet applications, where each such transaction results in physical delivery of farmers’ produce;

(b) “farmer” means an individual engaged in the production of farmers’ produce by self or by hired labour or otherwise, and includes the farmer producer organisation;

(i) foodstuffs including cereals like wheat, rice or other coarse grains, pulses, edible oilseeds, oils, vegetables, fruits, nuts, spices, sugarcane and products of poultry, piggery, goatery, fishery and dairy intended for human consumption in its natural or processed form;

(ii) Cattle fodder including oilcakes and other concentrates; and

(iii) Raw cotton whether ginned or unginned, cotton seeds and raw jute;

(d) “farmer producer organisation” means an association or group of farmers, bywhatever name called,–

(i) Registered under any law for the time being in force; or

(ii) Promoted under a scheme or programme sponsored by the Central or the State Government;

(e) “inter-State trade” means the act of buying or selling of farmers’ produce, wherein a trader of one State buys the farmers’produce from the farmer or a trader of another State and such farmers’ produce is transported to a State other than the State in which the trader purchased such farmers’ produce or where such farmers’ produce originated;

(f) “intra-State trade” means the act of buying or selling of farmers’ produce, wherein a trader of one State buys the farmers’ produce from a farmer or a trader of the same State in which the trader purchased such farmers’ produce or where such farmers’ produce originated;

(g) “notification” means a notification published by the Central Government or the State Governments in the Official Gazette and the expressions “notify” and “notified” shall be construed accordingly;

(h) “person” includes––

(a) an individual;

(b) a partnership firm;

(d) a limited liability partnership;

(e) a co-operative society;

(f) a society; or

(g) any association or body of persons duly incorporated or recognized as a group under any ongoing programmes of the Central Government or the State Government;

(i) “prescribed” means prescribed by the rules made by the Central Government under this Act;

S. 1] EC THE GAZETTE OF INDIA EXTRAORDINARY 3

(j) “scheduled farmers’ produce” means the agricultural produce specified under any State APMC Act for regulation;

(k) “State” includes the Union territory;

(l) “State APMC Act” means any State legislation or Union territory legislationin force in India, by whatever name called, which regulates markets for agricultural produce in that State;

(m) “trade area” means any area or location, place of production, collection and aggregation including––

(a) farm gates;

(b) factory premises;

(d) silos;

(e) cold storages; or

(f) any other structures or places,from where trade of farmers’ produce may be undertaken in the territory of India but does not include the premises, enclosures and structures constituting––

(i) physical boundaries of principal market yards, sub-market yards and market sub-yards managed and run by the market committees formed under each State APMC Act in force in India; and

(ii) private market yards, private market sub-yards, direct marketing collection centres, and private farmer-consumer market yards managed by persons holding licenses or any warehouses, silos, cold storages or other structures notified as markets or deemed markets under each State APMC Act in force in India;

(n) “trader” means a person who buys farmers’ produce by way of inter-State trade or intra-State trade or a combination thereof, either for self or on behalf of one or more persons for the purpose of wholesale trade, retail, end-use, value addition, processing, manufacturing, export, consumption or for such other purpose.

CHAPTER II P ROMOTION AND FACILITATION OF TRADE AND COMMERCE OF FARMERSPRODUCE

3. Subject to the provisions of this Act, any farmer or trader or electronic trading andFreedom to transaction platform shall have the freedom to carry on the inter-State or intra-State trade and commerce in farmers’ produce in a trade area. conduct trade and commerce in a trade area.

4. (1) Any trader may engage in the inter-State trade or intra-State trade of scheduledTrade and farmers’ produce with a farmer or another trader in a trade area: commerce of scheduled

Provided that no trader, except the farmer producer organisations or agricultural farmers’produce. co-operative society, shall trade in any scheduled farmers’ produce unless such a trader has 43 of 1961. a permanent account number allotted under the Income-tax Act, 1961 or such other document as may be notified by the Central Government.

(2) The Central Government may, if it is of the opinion that it is necessary and expedient in the public interest so to do, prescribe a system for electronic registration for a trader, modalities of trade transaction and mode of payment of the scheduled farmers’ produce in a trade area.