1. CHAPTER 1
Preliminary
Section 1(1) – deals with the short title of the act and states that the cat must be called the
“Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.”
(2) it states the date of commencement of the act which is 5th
day of June, 2020
Section 2 (definition of various terms)
(a) - states that until and unless the context requires, “electronic trading and transaction
platform” would refer to the buying and selling of farmers’ produce for the purpose of trade and
commerce through a medium of electronic devices which would result in physical delivery of
farmers’ produce.
(b) this clause defines who would be considered as a “Farmer”, it states that any person engaged
in production of farmers produce solely by himself or through hired labourers would be
considered as a farmer, including farmers production organisation.
(c) this clause defines what would constitute as “Farmers produce”,
i. it states that farmers produce would include foodstuffs inclusive of cereals like wheat,
rice or other coarse grains, pulses, edible oilseeds, oils, vegetables, fruits, nuts, spices,
sugarcane and products of poultry, piggery, goatery, fishery and dairy intended for
human consumption in its natural or processed form, and
ii. cattle fodder including oilcakes and other concentrates, and
iii. raw cotton whether ginned or unginned, cotton seeds and raw jute.
(d) this clause defines the term “Farmers produce organisation” , it defines it as an association
or group of people, that must be registered under law for the time being and must be promoted
under any of the central or the state scheme.
(e) this clause defines the term “Interstate trade”, it defines it as an act of buying and selling of
farmers’ produce in which a trader of one state buys the farmers’ produce of a farmer belonging
to another state. It conclusively refers to the selling of the farmers’ produce by the farmer to a
trader belonging to any other state other than the state in which the farmers produce has been
originated.
(f) this clause defines the term “Intra-state trade”, it defines it as an act of buying and selling of
farmers’ produce to a trader by the farmer in the state in which the farmer has grown his
produce.
2. (g) this clause defines the term “Notification”, it defines it as a notification published by the
state or the central government in the official gazette inclusive of the expressions “notify” and
“notified”
(h) this clause states that a “person” would include an individual, a partnership firm, a company,
a limited partnership firm, a company, a co-operative society, a society or any association or
body of persons duly incorporated or recognised as a group under any ongoing programmes of
the Central Government or the State Government.
(i) this clause defines the term “Prescribed”; it defines it as prescribed by the rules made by the
central government under this act.
(j) this clause defines the term “Scheduled farmers’ produce”, it defines it as the agricultural
produce defined under the APMC act for regulation.
(k) this clause defines the term “State”, it states that the term state is inclusive of Union territory.
(l) this clause defines the term “State APMC act”, it refers to as of any state legislation or union
territory legislation, called by whatsoever name, in force in India, which looks after the markets
for agricultural produce in that particular state.
(m) this clause defines the term “Trade area”, it defines it as any area or location, place of
production, collection and aggregation which is inclusive of farm gates, factory premises,
warehouses, silos, cold storage or any other structures or places from where the farmers’ produce
may be traded in the territory of India but is exclusive of the premises, enclosure and structures
constituting -
I. physical boundaries of principal market yards, sub-market yards and market sub-yards
managed and run by the market committees formed under each State APMC Act in force
in India; and
II. private market yards, private market sub-yards, direct marketing collection centers, and
private farmer-consumer market yards managed by persons holding licenses or any
warehouses, silos, cold storages or other structures notified as markets or deemed markets
under each State APMC Act in force in India;
(n) this clause defines the term “Trader”, it defines it as any person who is engaged in inter-state
or intra-state trade or is engaged in a combination of both, for himself or on behalf of someone
else for the purpose of wholesale trade, retail, end-use, value addition, processing,
manufacturing, export, consumption or for such other purposes.