Section 5
Electronic trading and transaction platform.
The Farmers Produce Trade and commerce (Promotion and Facilitation) Act, 2020
About this Act
An Act to provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers produce which facilitates remunerative prices through competitive alternative trading channels; to promote efficient, transparent and barrier-free inter-State and intra-State trade and commerce of farmers produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations; to provide a facilitative framework for electronic trading and for matters connected therewith or incidental thereto.
(1) Any person (other than individual),
having a permanent account number allotted under the Income-tax Act, 1961 (43 of 1961) or such
other document as may be notified by the Central Government or any farmer producer organisation or
agricultural co-operative society may establish and operate an electronic trading and transaction
platform for facilitating inter-State or intra-State trade and commerce of scheduled farmers’ produce
in a trade area:
Provided that the person establishing and operating an electronic trading and transaction platform shall prepare and implement the guidelines for fair trade practices such as mode of trading, fees, technical parameters including inter-operability with other platforms, logistics arrangments, quality assessment, timely payment, dissemination of guidelines in local language of the place of operation of the platform and such other matters.
(2) If the central Government is of the opinion that it is necessary and expedient in public interest so to do, it may, for electronic trading platforms, by rules--
(a) specify the procedure, norms, manner of registration; an
(b) specify the code of conduct, technical parameters including inter-operability with other platform and modalities of trade transaction including logistics arrangements and quality assessment of scheduled farmers’ produce and mode of payment, For facilitating fair inter-State and intra-State trade and commerce of scheduled farmers' produce in a trade area.
Provided that the person establishing and operating an electronic trading and transaction platform shall prepare and implement the guidelines for fair trade practices such as mode of trading, fees, technical parameters including inter-operability with other platforms, logistics arrangments, quality assessment, timely payment, dissemination of guidelines in local language of the place of operation of the platform and such other matters.
(2) If the central Government is of the opinion that it is necessary and expedient in public interest so to do, it may, for electronic trading platforms, by rules--
(a) specify the procedure, norms, manner of registration; an
(b) specify the code of conduct, technical parameters including inter-operability with other platform and modalities of trade transaction including logistics arrangements and quality assessment of scheduled farmers’ produce and mode of payment, For facilitating fair inter-State and intra-State trade and commerce of scheduled farmers' produce in a trade area.