Agricultural Produce Market Committees (APMCs) set up in 50’s to help the farmers sell their produce is proving counter-productive. The Modi government, locked in a fight with the raging inflation has asked the states to do away with the act or at least de-list fruits and vegetables from the list.
From cooperative sector IFFCO Managing Director Dr U S Awasthi is first to lend his full-support to this latest government move. In his tweet Dr. U S Awasthi (@drusawasthi) tweeted “ #iffco lauds #GOI action to relax #APMC act to give freedom to farmers anywhere and in any mode #iffco had been pleading for it since long.”
The benefits of on-going discussion on proposed changes in APMC act are many, says expert. Experts believe that amended APMC Acts would drive away middlemen and intermediaries in food supply chain.
The amendment in the rules would also lift the bar on establishment of new markets by other players like co-operative societies, Kisan Mandis, NAFED, Mother Dairy, Safal etc. bringing competition in the marketing of fruits and vegetables.
This is a politically wise way of ushering in competition, and thus causing reduction in prices of edibles. However, several APMCs are contemplating approaching the court for a stay on the notification.
However, APMCs meant for the good of farmers have been manipulated over the years by the middlemen, resulting in a net loss for farmers and consumers alike.
Different States have different rules under the APMC Act. Hence, scrapping the Act altogether will allow free flow of agricultural goods among States. This would help bridge the mismatch of demand and supply, which is another important factor leading to inflation.
Iffco MD used the occasion to voice his comments on two other important decision of new government. On urea price Awasthi tweeted “#GOI concern over excessive use of #Urea is Genuine #iffco had been raising it for last several year .the price of#urea is lowest in#india.
And on subsidy to farmers he had “ #PM jandhan yojna by getting bank account open will also help in direct transfer of fertiliser subsidy.
