New Delhi, Dec 7 (IANS): A recent report by PwC has debunked the myth that MSP system will be terminated and marketplaces will be abolished under the farm laws introduced by the Centre.

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, as per the facts laid out in the PwC report released on November 18, will ensure that MSP will continue as earlier, marketplaces will not be abolished, e-marketplaces to be promoted and farmers and traders can choose to sell their produce outside the marketplaces. The report debunked the myth that MSP system will be terminated and marketplaces will be abolished.

The PwC has also debunked the myth that the Essential Commodities (Amendment) Bill, 2020 will give rise in hoarding and black marketing by the private sector. The fact is that there will be free inter and intra-state trading without the burden of the APMC cess, and processors/exporters can retain stock and the government will monitor the prices.

The PwC has dispelled the myth that the Farmers Agreement of Price Assurance and Farm Services Bill, 2020 will be limit the role of the farmers in price determination, small farmers will be neglected and tough dispute resolution will take place. Instead, the fact is that it will give assured price, lesser risk and cost, direct selling option to farmers, limited liability, better economies of scale through farmer producer organisations (FPOs) and easy local-level dispute resolution.

The PwC said the recent bills passed by the Government of India (GoI) have been designed with a long-term vision to create a seamless 'one India' market for the stakeholders. The prime objective is to create freedom of choice for the farmers and traders for the sale and purchase of farmers' produce.

"We think that the reforms will impact all the stakeholders of the agricultural value chain, thereby creating new opportunities for them. The impact will begin to be realised in the next 2-3 years," it said.

The report said the Government of India has laid the foundation for the development of farmer collectives known as the FPOs. The existing FPO network across the country is going to emerge stronger with the formation of 10,000 new FPOs in the next five years.

The FPO initiative, coupled by the recent agricultural reforms, will create the required facilitative framework for direct sourcing from farmers, along with the required investment in infrastructure by the stakeholders for providing value added services to the farmers at their doorsteps.