Centre paves way for licence-free purchase directly from farmers

Any buyer with a PAN can purchase from farmers; no state or central taxes on direct procurement; food items removed from EC Act

The Union Cabinet on Wednesday cleared an Ordinance enabling buyers - be it farmer-producer companies or big retailers - to purchase directly from farmers outside the regulated mandis without any licence and armed with just a permanent account number (PAN) card.
 

It will not be subject to tax by the Centre or state - a step that could bring it in direct conflict with several states.
 

The Cabinet also approved the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020. This will facilitate contract farming between farmers and processors, and traders.
 

It also decided to remove