Maha Cabinet nod to farmers to sell produce directly to buyers

Maharashtra Cabinet today accorded in-principle approval to a proposal allowing farmers to either sell their agriculture produce-fruits and vegetables-at the market committees or directly to buyers, like private retailers or malls.
The decision is aimed at ensuring maximum profit to farmers, who can now fix the price at which he wants to sell the produce, Minister for Cooperation and Marketing, Chandrakant Patil, told reporters here.
"Sale of produce by farmers to malls and private retailers has been de-regulated and brought out of the sole jurisdiction of the Agricultural Produce Market Committee (APMC).
"The government decided to approve the proposal to enable farmers and APMCs to take part in the Centre's project 'e-Mandi', wherein people can buy and farmers can sell their produce online," Patil said.

The minister further said six months ago the government had sent the list of 30 APMCs to the Centre to be empaneled in the e-Mandi project. "However, since the government had not amended the law, the Centre rejected the state government's list two months ago," he said.
Patil added in 2010, the previous Congress-NCP government had tried to deregulate the sale and purchase of fruits and vegetables in the open market. However, traders and mathadi workers (head porters) at the APMCs had opposed the move.

He also clarified that the government is not going to dismantle the APMC system.
According to the minister, a cabinet sub-committee under his chairmanship has been set up to sort out the issues, clarify the doubts that the traders and mathadi labour unions at the APMC have in connection with the government proposal.

Patil said the government will issue an ordinance before
the monsoon session of the state legislature commences on July 18. During the ensuing monsoon session the government will move a Bill seeking to amend the relevant Acts.
The minister rejected the notion that if the farmers are allowed to sell their produce in the open market to the buyers or retailers there will be no effect on the turnover at APMC.
He said the annual turnover at APMC markets in the state is about Rs 50,000 crore. While the annual turnover involving agriculture produce outside is around Rs 5,000 crore.

"Earlier, farmers had to only sell their produce at the APMC market yards. This process involved deals being struck by the traders and middlemen with the farmer. The farmer in turn had to shell out at least 12 to 13 per cent by way of commissions to the traders, middlemen and labour costs to mathadis," he said.
Patil added that henceforth the financial onus of 'aadat' (striking a deal, fixing price for produce) will now rest on the trader at the APMC and not the farmer.
Although the purchasers or buyers will be allowed to directly procure the farm produce from the farmer, they will have to register themselves with the Assistant Registrar (AR) and District Deputy Registrar (DDR).

"This is being done to ensure protection to farmers who can lodge complaints with the AR or DDR if they are underpaid," he added.
"The proposal will mean granting legal sanctity to the sale of his produce by a farmer to the buyer," he said.