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CHAPTER 2
Promotion and Facilitation of trade and commerce of farmers’ produce
Section 3 – this section states that according to the provisions of the act, any farmer or trader
engaged in either electronic trading or physical trading will be vested with the freedom to carry
on inter-state or intra-state trade and commerce in farmers’ trade in a trade area.
Section 4 (1) - any trader can be engaged in inter-state or intra-state trade with a farmer for
farmers’ produce in a trade area subject to the provision that no trader except for the farmers’
produce organisation or agricultural co-operative society, should be engaged in trading farmers'
produce until and unless the trader has a permanent account number allotted under the income
tax act, 1961 or any other such document as notified by the central government.
(2) this clause states that the central government, if in its opinion it is necessary with respect to
public opinion, is vested with the power to 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.
(3) this clause states that every trader who transacts with farmers should make the payment for
the traded farmers’ produce on the same day or within the maximum three working days if so
required subject to the condition that the receipt of delivery mentioning the due payment amount
shall be given to the farmer on the same day.
Section 5(1) - this section states that any person having a PAN number allotted under the income
tax act, 1961 or any other such document as notified by the central government or any farmers’
produce organisation pr agricultural co-operative society may establish and operate an electronic
trading and transaction platform for facilitating inter-State or intra-State trade and commerce of
scheduled farmers’ produce in a trade area is subjected to the provision that the person engaged
in electronic trading and transaction shall prepare and implement guidelines for fair trade
practices such as mode of trading, fees, technical parameters including inter-operability with
other platforms, logistics arrangements, quality assessment, timely payment, dissemination of
guidelines in local language of the place of operation of the platform and such other matters.
(2) this clause states that if necessary for the betterment of the public then the central government
may, for electronic trading platforms, specify the procedures, norms, manner of registration the
code of conduct, technical parameters including inter-operability with other platform and
modalities of trade transaction inclusive of logistics arrangements and quality assessment of
scheduled farmers’ produce and mode of payment, for facilitating fair inter-State and intra-State
trade and commerce of farmers’ produce in a trade area.
Section 6 – this section states that no official market fee, cess, or levy by whatsoever name under
the state APMC act or any other state law can be demanded from any farmer during any
transaction for trade or on electronic trading market for farmers’ produce.
Section 7(1) - this section states that the central government might, through any central
government organisation, gas the power to establish a price information and market intelligence
system for farmers’ produce and a framework for dissemination of information relating thereto.
(2) this clause states that the central government might ask any person owning and operating an
electronic trading and transaction platform to provide information regarding the transactions
related to trade.

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legal language

  • 1. CHAPTER 2 Promotion and Facilitation of trade and commerce of farmers’ produce Section 3 – this section states that according to the provisions of the act, any farmer or trader engaged in either electronic trading or physical trading will be vested with the freedom to carry on inter-state or intra-state trade and commerce in farmers’ trade in a trade area. Section 4 (1) - any trader can be engaged in inter-state or intra-state trade with a farmer for farmers’ produce in a trade area subject to the provision that no trader except for the farmers’ produce organisation or agricultural co-operative society, should be engaged in trading farmers' produce until and unless the trader has a permanent account number allotted under the income tax act, 1961 or any other such document as notified by the central government. (2) this clause states that the central government, if in its opinion it is necessary with respect to public opinion, is vested with the power to 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. (3) this clause states that every trader who transacts with farmers should make the payment for the traded farmers’ produce on the same day or within the maximum three working days if so required subject to the condition that the receipt of delivery mentioning the due payment amount shall be given to the farmer on the same day. Section 5(1) - this section states that any person having a PAN number allotted under the income tax act, 1961 or any other such document as notified by the central government or any farmers’ produce organisation pr agricultural co-operative society may establish and operate an electronic trading and transaction platform for facilitating inter-State or intra-State trade and commerce of scheduled farmers’ produce in a trade area is subjected to the provision that the person engaged in electronic trading and transaction shall prepare and implement guidelines for fair trade practices such as mode of trading, fees, technical parameters including inter-operability with other platforms, logistics arrangements, quality assessment, timely payment, dissemination of guidelines in local language of the place of operation of the platform and such other matters. (2) this clause states that if necessary for the betterment of the public then the central government may, for electronic trading platforms, specify the procedures, norms, manner of registration the code of conduct, technical parameters including inter-operability with other platform and modalities of trade transaction inclusive of logistics arrangements and quality assessment of scheduled farmers’ produce and mode of payment, for facilitating fair inter-State and intra-State trade and commerce of farmers’ produce in a trade area. Section 6 – this section states that no official market fee, cess, or levy by whatsoever name under the state APMC act or any other state law can be demanded from any farmer during any transaction for trade or on electronic trading market for farmers’ produce.
  • 2. Section 7(1) - this section states that the central government might, through any central government organisation, gas the power to establish a price information and market intelligence system for farmers’ produce and a framework for dissemination of information relating thereto. (2) this clause states that the central government might ask any person owning and operating an electronic trading and transaction platform to provide information regarding the transactions related to trade.