Amends in APMC act to boost investment

In contrast to its announcement in state assembly yesterday that the Madhya Pradesh government will not allow FDI and any FDI-related activities in the state, the ruling BJP government on Friday cleared a Bill that will pave the way for big companies and FDI firms to set up shops in Madhya Pradesh. Importantly, manufacturers, processors and farmers will be exempted from mandi fee or tax.

A Bill namely Madhya Pradesh Krish Upaj Mandi (Tritiya Sanshodhan) Vidheyak, 2011 (MP Agriculture Produce Marketing Committee (APMC) Act of 1972) which is third amendment to MP Mandi Act, 1972 was cleared without any protest from opposition amidst thin presence of members. Interestingly, the main opposition Congress members who participated in half-an-hour debate termed it as historic and revolutionary.

“We want farmers to fetch better price for their commodities like fruits and vegetables which they are normally forced to sell in mandis. They now can sell to processors and manufacturers as we have amended section 6 of the Mandi Act and that way we will be able to exempt buying or trading from paying mandi tax or mandi fee,” said Ramakrishna Kusumaria, state agriculture minister while replying to Congress members.

The Congress members Paras Saklecha also welcomed the move and said the Bill would ensure a better price for farmers but the state government must have clarified what would happen to hand-made items. “It is a revolutionary step,” he said in house while debating on the Bill.

Another Congress member Radheshyam Patidar demanded more funds to create more facilities to farmers in mandis.

The previous congress government had already amended Mandi Act 1972 to allow biggies like ITC, Cargill and HLL (now Uniliver) to buy grains outside mandis. State finance minister Raghavji had yesterday informed the house that his government would oppose any move to allow FDI in retail and will ensure it in all forms.