The Odisha government has released two ordinances that would allow farmers to market their productions through various channels using contract farming. With this, the state joins Uttar Pradesh, Madhya Pradesh, Karnataka, and Gujarat, who have already changed their existing agricultural marketing laws for comprehensive reforms in the sector.
The Odisha Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Ordinance, 2020, published by the state government, aims at registration of farmers with contract farming companies for improving production and productivity by way of land, soil management, seeds, saplings, fingerlings, inputs, feed and fodder, technology, and other such services. It covers the sale and purchase of 50 varieties of plant products and five animal products.
Earlier this month, the Uttar Pradesh government had rolled out a similar ordinance. Meanwhile, state governments of Madhya Pradesh, Gujarat, and Karnataka, have published ordinances to ease the regulations binding the agricultural market.
The agricultural aspect is covered by the respective state governments under the Agricultural Produce Market Committee (APMC). They are responsible for the infrastructure for the marketing of agricultural products, regulation of the sale of such products, and the collection of market fees from such sale.
This ordinance which amends the Odisha Agricultural Produce Markets Amendment Act, 1957, enables the farmers to trade without any geographic demarcation. The transaction of agricultural products includes livestock across the state and country.
Before this amendment, every market area required a market yard, with one or more sub-market yards, for conducting all marketing activities. The amendment removes this restriction and specifies that for every market area, there may be:
(i)APMC managed principal market yard and sub-market yard
(ii)A private market yard which is licensed by the director of agriculture marketing
(iii)Online trading platforms
The ordinance restricts the consumer to purchase more than the specified quantity of agricultural produce at a time. The director will be responsible for the promotion of contract farming, trading, and connected activities for the notified agricultural produce, regulating private market yards and electronic trading platforms.