Bihar DyCM Sushil Modi thanks PM Modi for ordinances to deregulate farm sector

Bihar Deputy Chief Minister Sushil Kumar Modi on Thursday thanked Prime Minister Narendra Modi and the BJP-led government at the Centre for approving three ordinances aimed at deregulating the agriculture sector.

The Union Cabinet on Wednesday approved the ordinances removing restrictions on the purchase and sale of crops, paving the way for 'One Nation, One Agri Market' for farmers.

Comparing the Modi governments decisions on the agriculture sector with that of P V Narsimha Rao governments liberalisation and privatisation policy of 1991, the deputy chief minister said, "The way Narsimha Rao government had abolished license and permit raj for industries, the Modi government has removed all shackles for the agriculture sector."

While reminding people that the state government had abolished Bazar Samiti Act (Agricultural Produce Marketing Committee Act- APMC Act) way back in 2007, it had given farmers the freedom to sell their produce anywhere.

With the Centre's decision, farmers of Bihar can get relief from the cobwebs of Mandi Act enacted by various states, and not be compelled to sell their produce only to license holders.

The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, proposes to bar state governments from imposing taxes on sale and purchase of farm produce undertaken outside the mandis and give farmers the freedom to sell their produce at remunerative prices.

At present, farmers are allowed to sell their agriculture produce at 6,900-odd APMC (Agriculture Produce Marketing Committees) mandis spread across the nation. There are restrictions for farmers in selling agri-produce outside the mandis.

The decision to keep prominent agriculture produce such as potato, onion, pulses, oilseeds and other grains out of Essential Commodities Act 1955, will help farmers in getting fair price, said Modi who is also states Finance minister.

Under contract farming, farmers can now fix and get the price of their produce from prospective buyers such as exporters and big businessmen much before the actual production, he said. Land owners can now give their land on lease to anyone or can enter into contract farming with any company.

Farmers of the state are selling their produce directly to buyers without the intervention of any middlemen after the Bihar government abolished the APMC Act, the Finance minister said. Dozens of companies are buying various agriculture products directly from farmers on market rate.