This amendment sought to remove commodities like cereals, pulses, oilseeds, edible oils, onion, and potatoes from the list of essential commodities, aiming to deregulate the production, storage, movement, and distribution of these food items.

This legislation provided a framework for contract farming, enabling farmers to enter into agreements with agribusiness firms, processors, wholesalers, exporters, or large retailers for the sale of future produce at pre-agreed prices.

This act aimed to create an ecosystem where farmers and traders could engage in trade outside the physical premises of Agricultural Produce Market Committees (APMCs), promoting barrier-free inter-state and intra-state trade of farmers' produce.​