The Farming Produce Trade and Commerce Act, 2020

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  • The Farming Produce Trade and Commerce (Promotion and Facilitation) Act 2020 is one of the three landmark Acts that has replaced the Ordinances passed during the COVID-19 induced nation-wide lockdown. 
  • These three Acts together aims to bring about a transformational change in the agrarian sector and aid in doubling farmers incomes. 
  • The Farming Produce Trade and Commerce (Promotion and Facilitation) Act 2020 aims to provide an eco-system that facilitates freedom of choice for farmers and traders with respect to the sale and purchase of agricultural produce outside of conventionally defined marketplaces that otherwise exist. 
  • This Act hopes to boost efficient, transparent and barrier-free trade as well as commerce of farmers' produce.




  • The Highlights of the Act are:
  1. Free Trade of farmers’ produce: This specific Act facilitates intra-state and inter-state trade of farmers' produce through electronic medium and expand their ambit beyond the physical boundaries established by the Agricultural Produce Market Committees (APMC markets). As such it creates the possibility of more competition and better pricing for farmers. 
  2. Electronic trading: It also involves an electronic transaction platform for ensuring a seamless trade electronically of the farmers produce identified as such.  
  3. Abolition of CESS or levy for sale: Farmers will not be charged any fees for the sale of their produce, including transportation costs.




  • This Act paves the way for creating “One India, One Agriculture Market” and lays the foundation for doubling farmers income through improved competition and free trade. 
  • It supports Make in India efforts in the Agriculture sector and gives a boost to electronic trading that can help transform India into a Global Manufacturing Hub
  • By encouraging contract farming and an increased sense of ownership among farmers, it will also push forward the Hon’ble PM’s vision of Atmanirbhar Bharat.
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