Agriculture, Industry, Services are the three main sectors in India. The majority of the people depend upon the agriculture sector for their livelihood either by engaging in crop production or marketing aspects (OECD, 2019). First five-year plan has given utmost importance for agriculture growth and in early 1960s major marketing reforms has emerged. The concept of regulated market arises in India during 1960s, which ensure the farmer to sell their produce in the markets with reliable prices in restricted market areas. This concept was again remodified as Model APMC Act in the year 2003 with rectifying drawbacks of previous reforms with modification of no restriction of sale for farmers, which he can sell outside of the restricted market area. APMC act became a clear way, which protects the farmers` interest and fair play of both producers and traders in the market for agreed prices. Due to lack of infrastructure facilities like storage structures and warehouses, the post-harvest losses increased annually which made government to feel a necessary step for encouraging private players to invest in the building of cold storages in the country.  At all-India level, farmers are unable to sell about 40 percent of the total fruits and vegetables produced in the market and lose around `63,000 crore every year for not being able to sell their produce (Pandey, 2018). and also noticed that the losses in post-harvest sector are estimated to be from 10 to 25 per cent in durables, semi-perishables and products like milk, meat, fish and eggs and estimated losses in fruits and vegetables are higher which range from 30 to 40 per cent (Sharma, 2011). 

        Even though agriculture is a state subject, sometimes the centre interferes to set the limits, rules and regulations to take it in the right path and direction. By considering all the facts, centre has taken a step to implement agricultural farm bills on 14^th September 2020 to replace ordinances that came on 5^th June 2020. In order to foster and ease the commercial activities, the centre has passed the ordinance of 3 bills in 2020 but due to farmers protest against farm bills, Supreme Court had stayed bills in January 2021

 APMC Model & e-NAM in the state

The total APMC mandis in India were 6,946. Each state APMC works independently from other state APMC. Commercial activity through e-NAM in APMC maintains clear transparency in price discovery between actual supply and demand. The platform of e-NAM, launched in 2016 to create a network of existing mandis on a common online market platform as `One Nation, One Market` for agricultural commodities. It has 1,000 mandis located in 21 states and union territories.

 Cold chain Capacity in India

      There are 6 zones in India, in which zone-2, zone-3, zone-6 requires an extra capacity of the cold chain (as shown in Fig 2). There is a need to set up more warehouses and cold storage structures to increase cold chain capacity in India, which reduces post-harvest losses.

 Three New Farm Bills 2020: Agriculture Act 2020

i) The Farmers` Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 

      FPTC bill mainly aims at liberalizing the trade activities within and among the states in the nation. It states that farmers have the freedom to sell their commodities outside of notified market areas. As the mandis are less and unavailable in some villages, the farmer can be permitted to sell to traders and dictate their prices.

Table 1: Zonal wise cold chain capacity in India

Source: NCCD, 2015.

Predictable uncertainty: But some issues need to be considered that even the law stick to some points of MSP existence for commodities, available of mandis to farmers still after implementation of this bill, there may be negative impact in long run. By liberalising the trade and commerce rules, there is a chance of private traders procuring the commodities lower than MSP fixed rates which will lead to distress sale of surplus on farmer’s view.

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

       This bill mainly considers the issues of price assurance, contract farming and farmer income. It encourages farmers to have contract farming with private companies. Through the mutual agreement of contract farming by two parties i.e farmer and company, the farmer may be empowered with assured price as it is predefined and pre-agreed commitments. The company provides various farm services like seeds, fertilizers, technology to enhance their crop production. The government also had given clarity about the presence of a dispute settlement body to solve if any dispute or grievance occurs between two parties.

Predictable uncertainty: There may be a chance of delaying of payment or less payment to farmers from private companies and also may lead to shifting of crop production towards commercial cash crops by leaving staple crops which disturbs the local field crops.

iii) Essential Commodities Act (Amendment) Act, 2020

    Essential commodities consist of cereals, pulses, edible oils, oilseeds, onions, potatoes for which there is a purchasing limit for buyers according to the essential commodities act 1955. But this 2020 farm bill tries to relax the ceiling limit for buyers. This eventually encourages the private sector to procure more and may lead to the set-up building of warehouses, storage structures to store the excess product. The government also clarified that, it will involve in when there are natural calamities, wars, disasters in the nation. It also mentioned that, if the prices rise 100 percent for horticulture produce or 50 percent for non-perishable produce, then the government tries to rationalise the prices in unforeseen conditions of price rise.

Predictable uncertainty: But the problem may occur with the private traders as they procure in bulk quantities, stored for long times which may lead to hoarding and create artificial scarcity. Artificial scarcity may create a price rise of commodities which ultimately hurts the interest of consumers. There are opportunities for investments but the threat from the private sector should be carefully reconsidered and reviewed in this farm bill to avoid future uncertainties.

SWOT Analysis of New Farm Bills 2020