MSP, Mandis and the Farm Laws
The Three Farm Laws of 2020
In 2020, Parliament passed three laws to allow trade outside mandis, contract farming and changes to stock limits, aiming to open up farm markets.
A big reform attempt.
Trade law
Allowed trade of farm produce outside APMC markets without market fees.
Contract farming law
Set a framework for farmers to sign agreements with buyers before sowing.
Stock limits
Amended the Essential Commodities Act to relax stock limits for many foods.
Rationale
Supporters said the laws would increase choice and investment.
A private buyer
A firm signs a contract with farmers to buy potatoes at an agreed price.
Assuming the laws only helped or only hurt
They were contested.
Key takeaways
- Three laws were passed in 2020.
- They allowed trade outside mandis.
- They set rules for contract farming.
- Supporters expected more choice.
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