As per section 6 of the Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Act, 2020 [‘first farm Legislation’]¹ , if any farmer, trader, or electronic trading and transaction platform wishes to trade and commerce in scheduled farmers’ produce in a trade area then the respective state government cannot impose any market fee, cess or levy under any state law. With the coming into force of this first farm legislation, the state governments lose the revenue arising from the levy, cess or fee that comes under the existing Agriculture Product Marketing Committee [‘APMC’] laws or any state law seems to be violating the spirit of fiscal federalism in India.
