On September 27, India's President gave consent to three farm bills herein listed below:
As per this bill, farmers can enter into a written agreement for a specified period of time with companies and companies can customize the price, standard, and quality for the produce and other legalities in advance.
The new Marketplace law says that farmers can sell their produce anywhere – and not just in the APMC approved marketplace or mandis, they can sell it into not only their state but outside their state even online. Whereas state governments are prohibited from levying any market fee, cess, or levy outside APMC or Mandi areas.
This Act mainly controls and deals with the production, supply, and distribution of certain essential commodities. Companies and Supermarkets etc cannot accumulate the items listed in this act when there is a shortage and they can’t artificially increase the price.
The Farmers of UP, Haryana, and Punjab are upset with these bills and fear that this may be an excuse to pull off the MSP safety net from under their feet.
MSP stands for Minimum Support Price, It is the price lay down by the government to purchase crops from the farmers, whatever may be the market price for the crops. It is a significant part of India's agricultural price policy that assures the farmers about agricultural income before the sowing. MSP protects the farmers against excessive fall in price during bumper production years
Further State like Haryana & Punjab has vested interest of reduction in their state earnings as state governments are prohibited from levying any market fee, cess, or levy outside APMC or Mandi areas.
Haryana levies 2% Mandi Tax that goes to Mandi Board & 2% Rural Development cess that goes to state govt. whereas in Punjab it is 3% Mandi Tax and 3% rural development cess. Punjab is a smaller state and that earns Rs. 1700 crore in a year through rural development cess & Mandi tax. Besides this 2.5% commission agent also take home 2.% of the sale price.
So. these are some controversies on Farm Bills, Now let's see what comes out on round table conference between Farmer Unions and Centre.
Source:
https://www.indianeconomy.net/splclassroom/what-is-minimum-support-price/
Swastika Investmart Ltd. Group : Registered with
SEBI Reg. No. : NSE/BSE/MSEI/MCX/NCDEX: INZ000192732
Merchant Banking : INM000012102
Investment Adviser: INA000009843
CDSL/NSDL : IN-DP-115-2015
RBI Reg. No. : B-03-00174
IRDA Reg. No. : 713
NCDEX : 00844
Online Dispute Resolution : ODR
Issued in the interest of investors: Prevent Unauthorised transactions in your trading and Demat account. Update your mobile numbers/email IDs with Swastika Investmart Ltd.. Receive alerts and information of all debit and other important transactions in your trading and Demat account directly from Exchange/Depository on your mobile/email at the end of the day. KYC is a onetime exercise while dealing in securities markets. Once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. For any grievances or queries related to Swastika Investmart Ltd., please drop an email at compliance@swastika.co.in. To see the investor charter : NSDL- https://nsdl.co.in/publications/investor_charter.php, CDSL- https://www.cdslindia.com/Investors/InvestorCharter.html. You can also register your complaint with NSE - www. nse-investorhelpline.com/NICE PLUS, BSE - is@bseindia.com, MCX - grievance@mcxindia.com, NCDEX - ig@ncdex.com, SEBI - scores.gov.in/scores/Welcome.html. Benefits of SEBI SCORES - effective communication, speedy redressal of the grievances.“Attention Investors
.......... Issued in the interest of Investors"
Note: Standard warning- “Investment in securities market are subject to market risks, read all the related documents carefully before investing"
RISK DISCLOSURES ON DERIVATIVES.
Source: SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.
Free market recommendation on our official telegram channel
Just Select & Click as per your requirement :-
Trust Our Expert Picks
for Your Investments!