Krishi Upad Mandi (Amendment) Bill 2020

#GS3 #Agriculture #Trade


Chhattisgarh Assembly passed an amendment Bill to invalidate the Centre’s recently-notified agriculture legislations in one day session.

  • The Assembly passed the Chhattisgarh Krishi Upad Mandi (Amendment) Bill 2020. It gives strength to the state government:
  • To regulate all agricultural produce markets
  • Introduces a new concept of deemed markets which includes cold storages and silos
  • Makes provision for establishment of an electronic trading place under the state control
  • Makes it mandatory for a purchaser to submit his records and stocks for inspection
  • Introduces jail term extending upto six months for violation of the legislation



  • The state government has introduced the concept of deemed market and given state agencies control over these. Deemed markets would include cold storage, silos, warehouse, electronic trading and transaction platforms.
  • With the amendment, the state government hopes to limit the entry of any corporate or private entity as it would control all these operations.
  • If a private entity enters into agreement with farmers, it would have to submit its accounts and stocks to state scrutiny.
  • Another amendment has also given the state government the power to have an electronic trading platform where the farmers of the state or another state can buy or sell their agricultural produce. This neutralises the Centre’s provision of agriculture trade without boundaries.
  • The state government may, establish an electronic trading platform for the sale of notified agriculture produce, farmer/Seller should sell his produce to the local market as well as other markets of the state and traders of other states through a transparent auction process on the basis of quality to get better price and timely online payment.


Why were the farm bills passed?

  • The farm bills were passed:
  • To Spilt the monopoly of government-manage mandis. It also passed to permit farmers to sell directly to private buyers.
  • To give a legal framework for farmers to enter into written contract with organization and produce for them.
  • To allow agri-businesses to stock food articles. To remove the government’s ability to thrust restrictions arbitrarily.
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