The Farmers` Agreement on Price Assurance and Farm Services Act 2020 (FAPAFS) is a new legislation introduced by the Indian government to ensure fair compensation for farmers and promote contract farming. The act aims to provide a legal framework for farmers to enter into agreements with buyers, processors, and aggregators for the sale and purchase of agricultural produce. The primary objective of the act is to protect farmers from exploitation and provide them with a stable and assured income.

Under the FAPAFS, farmers can enter into contracts with buyers or companies for the production and sale of agricultural produce. The contract includes details such as the quantity of produce, price, quality, and delivery schedules. The act specifies that the buyer or company cannot take possession of the farmer`s land and that the farmer has the right to terminate the contract if the buyer or company defaults in payment or does not fulfill the quality standards.

The act also provides for a dispute resolution mechanism through a conciliation process. A conciliation board is set up at the district level, and disputes between the parties are referred to this board. If the dispute is not resolved through the conciliation process, the parties can approach the Sub-Divisional Magistrate (SDM) for a resolution.

Another significant provision of the act is the establishment of a price guarantee mechanism. The act provides for the establishment of a regulatory authority at the state level, which will register buyers, sellers, and contracts. The regulatory authority will also ensure that the buyer or company pays the agreed-upon price to farmers. If the buyer or company fails to pay the price, the regulatory authority can initiate action against them.

The FAPAFS also provides for the creation of Farmer Producer Organizations (FPOs). FPOs are groups of farmers who come together to improve their bargaining power and negotiate better prices for their produce. The act provides for the registration of FPOs, and they can enter into contracts with buyers or companies for the sale of agricultural produce.

In conclusion, the FAPAFS is a significant step towards ensuring fair compensation for farmers and promoting contract farming in India. The act provides a legal framework for farmers to enter into agreements with buyers and companies, protects them from exploitation, and provides them with a stable and assured income. The establishment of a regulatory authority and the creation of FPOs will further strengthen the position of farmers and help them negotiate better prices for their produce.