Question

In September 2020, the Parliament of India passed three ‘Farm Bills’, i.e. the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and the Essential Commodities (Amendment) Act, 2020. Which of these subjects are NOT dealt with in any of the three legislations ?

• A. Selling of produce outside Agriculture Produce Market Committees
• B. Contract farming
• C. Removal of income tax exemption granted to agricultural income
• D. Restriction of situations in which supply of foodstuffs can be regulated

Answer 1

The Correct Option is C

In September 2020, three significant Farm Bills were passed by the Indian Parliament:

• Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020: This legislation allows the sale and trading of farm produce outside the Agriculture Produce Market Committees (APMCs). It aims to provide farmers with more freedom to sell their produce and potentially earn better prices.
• Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020: This act focuses on contract farming, providing a legal framework for farmers to enter agreements with agribusinesses, retailers, and others for the sale of future farming produce at pre-agreed prices.
• Essential Commodities (Amendment) Act, 2020: This amendment limits the government's ability to regulate the supply of foodstuffs, thus aiming to reduce storage and supply restrictions.

The subject of "Removal of income tax exemption granted to agricultural income" is not covered in any of these legislations. Agricultural income in India continues to remain exempt from income tax as per the existing law. Thus, the correct answer is:

Removal of income tax exemption granted to agricultural income