(1) This Act may be called the Farmersu2019 Produce Trade andcommerce (Promotion and Facilitation) Act, 2020.

(2) It shall be deemed to have come into force on the 5th day of June, 2020

In this Act, unless the context otherwise requires,--

(a) "electronic trading and transaction platform" means a platform set up to facilitate directand online buying and selling for conduct of trade and commerce of farmersu2019 produce through anetwork of electronic devices and internet applications, where each such transaction results inphysical delivery of farmersu2019 produce;

(b) "farmer" means an individual engaged in the production of farmersu2019 produce by self or byhired labour or otherwise, and includes the farmer producer organisation;

(c) "farmersu2019 produce" means,--

(i) foodstuffs including cereals like wheat, rice or other coarse grains, pulses, edibleoilseeds, 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;

(ii) cattle fodder including oilcakes and other concentrates; and

(iii) raw cotton whether ginned or unginned, cotton seeds and raw jute;

(d) "farmer producer organisation" means an association or group of farmers, by whatevername called,--

(i) registered under any law for the time being in force; or

(ii) promoted under a scheme or programme sponsored by the Central or the StateGovernment;

(e) "inter-State trade" means the act of buying or selling of farmersu2019 produce, wherein a traderof one State buys the farmersu2019 produce from the farmer or a trader of another State and suchfarmersu2019 produce is transported to a State other than the State in which the trader purchased suchfarmersu2019 produce or where such farmersu2019 produce originated;

(f) "intra-State trade" means the act of buying or selling of farmersu2019 produce, wherein a traderof one State buys the farmersu2019 produce from a farmer or a trader of the same State in which thetrader purchased such farmersu2019 produce or where such farmersu2019 produce originated;

(g) "notification" means a notification published by the Central Government or the StateGovernments in the Official Gazette and the expressions "notify" and "notified" shall beconstrued accordingly;

(h) "person" includes--

(a) an individual;

(b) a partnership firm;

(c) a company;

(d) a limited liability partnership;

(e) a co-operative society;

(f) a society; or

(g) any association or body of persons duly incorporated or recognised as a group underany ongoing programmes of the Central Government or the State Government;

(i) "prescribed" means prescribed by the rules made by the Central Government under thisAct;

(j) "scheduled farmers' produce" means the agricultural produce specified under any StateAPMC Act for regulation;

(k) "State" includes the Union territory;

(l) "State APMC Act" means any State legislation or Union territory legislation in force inIndia, by whatever name called, which regulates markets for agricultural produce in that State;

(m) "trade area" means any area or location, place of production, collection and aggregationincluding--

(a) farm gates;

(b) factory premises;

(c) warehouses;

(d) silos;

(e) cold storages; or

(f) any other structures or places,

from where trade of farmersu2019 produce may be undertaken in the territory of India but does notinclude the premises, enclosures and structures constituting--

(i) physical boundaries of principal market yards, sub-market yards and market sub-yardsmanaged and run by the market committees formed under each State APMC Act in force inIndia; and

(ii) private market yards, private market sub-yards, direct marketing collection centres,and private farmer-consumer market yards managed by persons holding licenses or anywarehouses, silos, cold storages or other structures notified as markets or deemed marketsunder each State APMC Act in force in India;

(n) "trader" means a person who buys farmersu2019 produce by way of inter-State trade or intraState trade or a combination thereof, either for self or on behalf of one or more persons for thepurpose of wholesale trade, retail, end-use, value addition, processing, manufacturing, export,consumption or for such other purpose.

Subject to the provisions of thisAct, any farmer or trader or electronic trading and transaction platform shall have the freedom tocarry on the inter-State or intra-State trade and commerce in farmersu2019 produce in a trade area.

(1) Any trader may engage in theinter-State trade or intra-State trade of scheduled farmersu2019 produce with a farmer or another trader in atrade area:

Provided that no trader, except the farmer producer organisations or agricultural co-operativesociety, shall trade in any scheduled farmersu2019 produce unless such a trader has a permanent accountnumber allotted under the Income-tax Act, 1961 (43 of 1961) or such other document as may benotified by the Central Government.

(2) The Central Government may, if it is of the opinion that it is necessary and expedient in thepublic interest so to do, prescribe a system for electronic registration for a trader, modalities of tradetransaction and mode of payment of the scheduled farmersu2019 produce in a trade area.

(3) Every trader who transacts with farmers shall make payment for the traded scheduled farmersu2019produce on the same day or within the maximum three working days if procedurally so requiredsubject to the condition that the receipt of delivery mentioning the due payment amount shall be givento the farmer on the same day:

Provided that the Central Government may prescribe a different procedure of payment by farmerproduce organisation or agriculture co-operative society, by whatever name called, linked with thereceipt of payment from the buyers.

(1) Any person (other than individual),having a permanent account number allotted under the Income-tax Act, 1961 (43 of 1961) or suchother document as may be notified by the Central Government or any farmer producer organisation oragricultural co-operative society may establish and operate an electronic trading and transactionplatform for facilitating inter-State or intra-State trade and commerce of scheduled farmersu2019 producein a trade area:

Provided that the person establishing and operating an electronic trading and transaction platformshall prepare and implement the guidelines for fair trade practices such as mode of trading, fees,technical parameters including inter-operability with other platforms, logistics arrangments, qualityassessment, timely payment, dissemination of guidelines in local language of the place of operation ofthe platform and such other matters.

(2) If the central Government is of the opinion that it is necessary and expedient in public interestso to do, it may, for electronic trading platforms, by rules--

(a) specify the procedure, norms, manner of registration; an

(b) specify the code of conduct, technical parameters including inter-operability with otherplatform and modalities of trade transaction including logistics arrangements and qualityassessment of scheduled farmersu2019 produce and mode of payment,For facilitating fair inter-State and intra-State trade and commerce of scheduled farmers' produce in atrade area.

No market fee or cess or levy, bywhatever name called, under any State APMC Act or any other State law, shall be levied on anyfarmer or trader or electronic trading and transaction platform for trade and commerce in scheduledfarmersu2019 produce in a trade area.

(1) The Central Government may,through any Central Government Organisation, develop a Price Information and Market IntelligenceSystem for farmers produce and a framework for dissemination of information relating thereto.

(2) The Central Government may require any person owning and operating an electronic tradingand transaction platform to provide information regarding such transactions as may be prescribed.

Explanation.--For the purposes of this section, the expression "Central GovernmentOrganisation" includes any subordinate or attached office, Government owned or promoted companyor society.

(1) In case of any dispute arising out of atransaction between the farmer and a trader under section 4, the parties may seek a mutuallyacceptable solution through conciliation by filing an application to the Sub-Divisional Magistrate whoshall refer such dispute to a Conciliation Board to be appointed by him for facilitating the bindingsettlement of the dispute.

(2) Every Board of Conciliation appointed by the Sub-Divisional Magistrate under sub-section(1), shall consist of a chairperson and such members not less than two and not more than four, as theSub-Divisional Magistrate may deem fit.

(3) The chairperson shall be an officer serving under the supervision and control of the Sub-Divisional Magistrate and the other members shall be persons appointed in equal numbers to representthe parties to the dispute and any person appointed to represent a party shall be appointed on therecommendation of that party:

Provided that, if any party fails to make such recommendation within seven days, the Sub-Divisional Magistrate shall appoint such persons as he thinks fit to represent that party.

(4) Where, in respect of any dispute, a settlement is arrived at during the course of conciliationproceedings, a memorandum of settlement shall be drawn accordingly and signed by the parties tosuch dispute which shall be binding upon the parties.

(5) If the parties to the transaction under sub-section (1) are unable to resolve the dispute withinthirty days in the manner set out under this section, they may approach the Sub-Divisional Magistrateconcerned who shall be the "Sub-Divisional Authority" for settlement of such dispute.

(6) The Sub-Divisional Authority on its own motion or on a petition or on the reference from anyGovernment agency take cognizance of any contravention of the provisions of section 4 or rules madethereunder and take action under sub-section (7).

(7) The Sub-Divisional Authority shall decide the dispute or contravention under this section in asummary manner within thirty days from the date of its filing and after giving the parties anopportunity of being heard, he may--

(a) pass an order for the recovery of the amount under dispute; or

(b) impose a penalty as stipulated in sub-section (1) of section 11; or

(c) pass an order for restraining the trader in dispute from undertaking any trade andcommerce of scheduled farmers produce, directly or indirectly under this Act for such period asit may deem fit.

(8) Any party aggrieved by the order of the Sub-Divisional Authority may prefer an appeal beforethe Appellate Authority (Collector or Additional Collector nominated by the Collector) within thirtydays of such order who shall dispose of the appeal within thirty days from the date of filing of suchappeal.

(9) Every order of the Sub-Divisional Authority or Appellate Authority under this section shallhave force of the decree of a civil court and shall be enforceable as such, and decretal amount shall berecovered as arrears of land revenue.

(10) The manner and procedure for filing a petition or an application before the Sub-DivisionalAuthority and appeal before the appellate authority shall be such as may be prescribed.

(1) The Agriculture Marketing Adviser, Directorate of Marketing and Inspection,Government of India or an officer of the State Government to whom such powers are delegated by theCentral Government in consultation with the respective State Government may, on its own motion oron a petition or on the reference from any Government Agency, take cognizance of any breach of theprocedures, norms, manner of registration and code of conduct or any breach of the guidelines for fair trade practices by the electronic trading and transaction platform established under section 5 orcontravenes the provisions of section 7 and, by an order within sixty days from the date of receipt andfor the reasons to be recorded, he may--

(a) pass an order for the recovery of the amount payable to the farmers and traders;

(b) impose a penalty as stipulated in sub-section (2) of section 11; or

(c) suspend for such period as he deems fit or cancel the right to operate as an electronictrading and transaction platform:

Provided that no order for recovery of amount, imposition of penalty or suspension orcancellation of the right to operate shall be passed without giving the operator of such electronictrading and transaction platform an opportunity of being heard.

(2) Every order made under sub-section (1) shall have force of the decree of a civil court and shallbe enforceable as such and the decretal amount shall be recovered as arrears of land revenue.

(1) Any person aggrieved by an orderunder section 9 may, prefer an appeal within sixty days from the date of such order, to an officer notbelow the rank of Joint Secretary to the Government of India to be nominated by the CentralGovernment for this purpose:

Provided that an appeal may be admitted even after the expiry of the said period of sixty days, butnot beyond a total period of ninety days, if the appellant satisfies the appellate authority, that he hadsufficient cause for not preferring the appeal within the said period.

(2) Every appeal made under this section shall be made in such form and manner, and shall beaccompanied by a copy of the order appealed against and by such fees as may be prescribed.

(3) The procedure for disposing of an appeal shall be such as may be prescribed.

(4) An appeal filed under this section shall be heard and disposed of within a period of ninetydays from the date of its filing:

Provided that before disposing of an appeal, the appellant shall be given an opportunity of beingheard.

(1) Whoever contravenes the provisions of section4 or the rules made thereunder shall be liable to pay a penalty which shall not be less than twenty-fivethousand rupees but which may extend up to five lakh rupees, and where the contravention is acontinuing one, further penalty not exceeding five thousand rupees for each day after the first dayduring which the contravention continues.

(2) If any person, who owns, controls or operates an electronic trading and transaction platform,contravenes the provisions of sections 5 and 7 or the rules made thereunder shall be liable to pay apenalty which shall not be less than fifty thousand rupees but which may extend up to ten lakh rupees,and where the contravention is a continuing one, further penalty not exceeding ten thousand rupeesfor each day after the first day during which the contravention continues.

The Central Government may, for carrying out the provisions of this Act, give such instructions,directions, orders or issue guidelines as it may deem necessary to any authority or officer subordinateto the Central Government, any State Government or any authority or officer subordinate to a StateGovernment, an electronic trading and transaction platform or to any person or persons owning oroperating an electronic trading and transaction platform, or a trader or class of traders.

No suit, prosecution or other legal proceedingsshall lie against the Central Government or the State Government, or any officer of the Central Government or the State Government or any other person in respect of anything which is in good faithdone or intended to be done under this Act or of any rules or orders made thereunder.

The provisions of this Act shall have effect, notwithstandinganything inconsistent therewith contained in any State APMC Act or any other law for time being inforce or in any instrument having effect by virtue of any law for the time being in force.

No civil court shall have jurisdiction to entertain any suitor proceedings in respect of any matter, the cognizance of which can be taken and disposed of by anyauthority empowered by or under this Act or the rules made thereunder.

Nothing contained in this Act, shall be applicableto the Stock Exchanges and Clearing Corporations recognised under the Securities Contracts(Regulation) Act, 1956 and the transactions made thereunder.

(1) The Central Government may, bynotification by notification, make rules for carrying out the provisions of this Act.

(2) In particular and without prejudice to the generality of the forgoing power, such rules mayprovide for all or any of the following matters, namely:u2013--

(a) the system of electronic registration for a trader and modalities of trade transaction ofscheduled farmersu2019 produce under sub-section (2) of section 4;

(b) the procedure of payment under proviso to sub-section (3) of section 4;

(c) the manner and procedure for filing a petition or an application before the Sub-DivisionalAuthority and appeal before the appellate authority under sub-section (10) of section 8;

(d) the information regarding transactions under sub-section (2) of section 9;

(e) the form and manner and the fee payable for filing an appeal under sub-section (2) ofsection 10;

(f) the procedure for disposing of an appeal under sub-section (3) of section 10;

(g) any other matter which is to be or may be prescribed.

Every rule made by the Central Government under this Act shall be laid, assoon as may be after it is made, before each House of Parliament, while it is in session, for a totalperiod of thirty days which may be comprised in one session or in two or more successive sessions,and if, before the expiry of the session immediately following the session or the successive sessionsaforesaid, both Houses agree in making any modification in the rule or both Houses agree that the ruleshould not be made, the rule shall thereafter have effect only in such modified form or be of no effect,as the case may be; so, however, that any such modification or annulment shall be without prejudiceto the validity of anything previously done under that rule.

(1) If any difficulty arises in giving effect to the provisions ofthis Act, the Central Government may, by order published in the Official Gazette, make suchprovisions not inconsistent with the provisions of this Act as may appear to it to be necessary forremoving the difficulty:

Provided that no order shall be made under this section after the expiry of the period of threeyears from the date of commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is made, be laid beforeeach House of Parliament.

(1) The Farmersu2019 Produce Trade and Commerce (Promotion andFacilitation) Ordinance, 2020 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action under the said Ordinance, shall bedeemed to have been done or taken under the corresponding provisions of this Act.