Indian Farm Bill 2020 in the context of Farm Management Software!!
The Indian Parliament passed 3 momentous Indian Farm Bills agricultural bills on September 2020 that resulted in a nationwide protest by the famers. Meanwhile the government has instituted an interim period, for discussion with the farmers about their concerns, until the rules are fully imposed.
How do the new laws affect contract farming? What is the one thing you lack that can change the game of your agribusiness?
Read on to find out!
THE FARM LAWS 2020
The farm reforms passed in 2020 involves three acts but we need to concern ourselves primarily with these two:
1- Farmersâ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
- Farmers can trade outside âmandisâ and APMCs
- Farmers can negotiate prices for their products
- Barrier free interstate and intra-state transportation
- Facilitation of electronic framework for trade practices
2- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
- Farmers can enter into contract with agribusinesses or large sellers on pre-determined prices
- Risk of market unpredictability transferred to sponsors
- Ensures risk mitigation and guaranteed payment to farmer
Thus, the new laws can potentially change the face of your contract farming or agribusiness because now,
- You deal with farmers directly eliminating brokerage and govt agencies
- Hindering Red tapes are eliminated
- Pre agree on prices and product specifications
- Govt guarantees barrier free transportation
For forward thinking agribusinesses we have an investor friendly recipe beginning with the judicious utilization of these laws. Now we reach the million-dollar question. What is a key investment that can change your agribusiness game and put you on the world food map?
FARM MANAGEMENT SOFTWARE
Now that an investor can directly communicate with the farmers, introducing an FMS into this agreement can channelize these communication pathways to increase business efficiency. Information and communication technology (ICT), Internet of Things (IOT), Artificial Intelligence (AI), Unmanned Aerial Vehicles (UAV), weather forecast etc. can be incorporated to provide time stamped data to make decisions concerning real time risks.
Still not sure about getting an FMS for your agribusiness? Look below!