The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Act, 2020 [first farm law]creates a barrier free inter-state and intra-state trade of farmer’s produce. Whereas, the Farmers’ (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020 [secondfarm law] creates a national framework for contract farming. These two farm laws effectively allow a farmer to sell his produce even beyond market/mandis set up under various state APMC laws, where they used to get a minimum government determined price, which is generally referred to a floor price or minimum support price [hereinafter referred to as ‘MSP’], and can enter into direct contract with a buyer at a mutually pre-determined price. The fear expressed by many is that under these farm laws there is a lack of security as to the assurance of a minimum support price.
