Recent Updates in Indian Farming Laws
Electronic National Agriculture Market (e-NAM)
Overview: Launched in April 2016, e-NAM is a unified online trading portal aimed at improving price discovery and reducing intermediaries in agricultural marketing. It connects APMC mandis across the country.
- Coverage: As of 2025, 1,473 mandis across 27 states/UTs are integrated with eNAM. Over 17.89 million farmers, 2.65 lakh traders, and 4,404 FPOs are registered.
- Trade Volumes: Total trade in 2024–25 reached ₹80,262 crore. However, inter-state transactions remained low at ₹21 crore, indicating limited cross-border trading.
- eNAM 2.0: Planned upgrades include logistics integration, e-KYC via Aadhaar/bank accounts, and complete value chain linkages to promote inter-mandi trading.
Stock Limits under the Essential Commodities Act
Legal Background: The Essential Commodities Act allows the government to impose stock-holding limits to curb hoarding. The 2020 farm law amendments that liberalized this were repealed in 2021.
- Wheat Limits (2024): Effective June 24, 2024 — stock capped at 3,000 tonnes for traders, 10 tonnes for retailers (per outlet), and 70% of monthly capacity for millers.
- Pulses Limits (2024): Tur and desi chana were restricted as of June 21, 2024. Wholesalers were allowed 200 tonnes each; retailers only 5 tonnes each.
- Selective Relaxation: Kabuli chana was exempted from stock limits in July 2024. Imported pulses must be sold within 45 days of clearance.
Contract Farming
Background: The 2020 Farm Act on contract farming was repealed in 2021. There is currently no central law regulating contract farming in India.
- State Frameworks: Many states already allow contract farming through their APMC Acts. Punjab (2013), and other 14 states had modified laws by 2017 to enable contracts.
- Model Law: NITI Aayog released a Model Contract Farming Act in 2018 to guide states.
- Recent Initiatives: In 2024, the government proposed a ₹50,000 crore incentive to states for marketing reforms. Central agencies began pilot contract farming projects for pulses in Tamil Nadu, Bihar, Jharkhand, and Gujarat, with government procurement at MSP or market rate.
Conclusion
The Indian agricultural landscape continues to evolve with digital trading platforms like e-NAM, revised stock holding norms under the Essential Commodities Act, and renewed interest in contract farming post repeal of the 2020 laws. The emphasis is on improving price stability, supply chain efficiency, and farmer incomes through policy reforms and technological integration.