Centre likely to call state CMs meet to finalise APMC Act 2.0

The Centre is likely to convene a meeting of state chief ministers by the month-end to finalise changes to the draft model APMC Act that aims to increase farmers' income by improving marketing efficiency.
The Union Agriculture Ministry has already sought comments from stakeholders, including farmers, on the draft Model Agricultural Produce Market Committee (APMC) Act.
"We are going to call a meeting of state chief ministers on April 24 to discuss anomalies in the draft, if any, and finalise it," Additional Secretary in Agriculture Ministry Ashok Dalwai told reporters.
The new model act has been framed as the existing mandis over the time have largely "become restrictive and monopolistic and, thus, failed to achieve these objectives fully", said the draft model act in its objects and reasons.

That apart, existing regulation does not facilitate free flow of agricultural produce, direct interface of farmers with the processors exporters/bulk buyers/end users, which are disadvantageous to both farmers and consumers.
With substantive changes in the nation's transport and communication infrastructure besides penetration of internet and smartphones in rural areas, the environment is ripe for greater market integration, the draft said.

Among key salient features of the new model APMC Act, the Centre has proposed abolition of fragmentation of market within the state by removing the concept of notified market area by APMC.
It has proposed giving freedom to farmers to sell their produce to buyers and at the place and time of their choice, to whom so ever and wherever they get better prices.

It has recommended provisions for single point levy of market fee across the state and unified single trading licence to realise cost-effective transactions.
Under the draft model law, licencee of private market yard, market sub-yard, electronic trading and direct marketing have been placed at the same level playing field with the market yards of the APMCs.
There will be rationalisation of market fee and commission charges, promotion of e-trading to enhance transparency in trade operations and integration of markets across geographies, as also democratisation of market committee and state agricultural marketing board.
The Centre has proposed promotion of direct interface between farmers and processors' exporters' bulk-buyers' end users so as to reduce the price spread bringing advantage to both the producers & the consumers.

It also recommended for creation of a conducive environment for setting up and operating of private wholesale market yards and farmer consumer market yards to enhance competition.
That apart, the new draft also seeks to promote national market for agriculture produce through provisioning of inter- state trading licence, grading and standardization and quality certification.
There would also be provision for Special Commodity Market yards and Market yards of National Importance (MNI).
The centre had come out the Model APMC Act in 2003 and framed rules in 2007.