Centre to bring new model APMC Act to exclude contract farming by 2017

To exclude contract farming by 2017

The Centre is planning to bring a fresh model Agricultural Produce Market Committee Act, after consulting with states, to remove contract farming from its ambit. It will also lay down a mechanism to compensate states for revenue loss suffered due to delisting of a farm commodity.

The new Act, expected by 2017, will also have a provision for setting up private marketing yards within a designated area of a market to increase competition.

However, a move to rank states on the basis of their performance in reforming agriculture marketing did not find favour with states, during a day-long meeting with top officials of the NITI Aayog and the agriculture ministry.

“The new model Act will be framed and will be ready for Cabinet approval in two to three months,” said Ashok Dalwai, joint secretary in the ministry of agriculture.

The old Act was formulated in 2003. But less than two-thirds of the states have modified their mandi laws in line with the model Act, compelling the Centre to frame another Act.

“In the new model APMC Act, one method of compensating states for revenue loss due to delisting of some commodities will be either through the state budgets or by directing Nabard to do it,” Chand said.

That apart, the officials also decided to take up three major reforms in the short term, including removal of restrictions on growing of trees in private land, to realise their commercial value and change land lease laws.

The Aayog, under instructions from the Prime Minister’s Office, has identified 25 reform initiatives to be taken up in a phased manner over three to five years.

Chand said in 2014 the ministry of environment and forests had issued a guideline to states to give freedom to farmers to grow and cut trees on private land and some states have made changes in the Acts, while others are considering changing.
GM CROP

NITI Aayog member Ramesh Chand said the Aayog’s and his personal view on GM crop were that it should be allowed in some crops like pulses and there should not be any fear of multinational takeover if the variety was made in Indian institutes. “We should have faith in our existing institutions like GEAC and once a crop has been cleared for field trials by it, there should not be any controversy in it,” Chand added.