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Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020

Objective of the Scheme:-

Farming agreement: The Act provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any farm produce. The minimum period of an agreement will be one crop season or one production cycle of livestock. The maximum period is five years unless the production cycle is more than five years. 

Pricing of farming produces: The price of farming produce should be mentioned in the agreement. For prices subjected to variation, a guaranteed price for the product and a clear reference for any additional amount above the guaranteed price must be specified in the agreement. Further, the process of price determination must be mentioned in the agreement.

Dispute Settlement: A farming agreement must provide for a conciliation board as well as a conciliation process for settlement of disputes. The Board should have a fair and balanced representation of parties to the agreement. At first, all disputes must be referred to the board for resolution. if the dispute remains unresolved by the Board after thirty days, parties may approach the Sub-divisional Magistrate for resolution. Parties will have a right to appeal to an Appellate Authority (presided by collector or additional collector) against decisions of the Magistrate. Both the Magistrate and Appellate Authority will be required to dispose of a dispute within thirty days from the receipt of application. The Magistrate or the Appellate Authority may impose certain penalties on the party contravening the agreement. However, no action can be taken against the agricultural land of the farmer for recovery of any dues.

Implementing Agency Name:-Ministry of Agriculture and Farmers Welfare
Start Date:-2020
End Date:-Cont.
Eligibility to Avail the benefits:-
Area of Operations:-Across the Country
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