Abolition of APMC cess sought

The cess imposed on the agriculture produce brought by farmers to the agriculture produce market committee (APMC) yards across Karnataka is resulting in farmers diverting their produce to neighbouring states.

The APMC charges a 1.5 per cent cess on the produce coming into its yards. The APMCs in neighbouring Andhra Pradesh, Maharashtra and Tamil Nadu either do not impose cess or the cess is negligible. The neighbouring states do not impose any cess on cereals. As a result the tur dal grown in Gulbarga district is being sold at Maharashtra.

Expressing concern over these developments, Hubli APMC member Ramesh Bafna has urged the state government to abolish the APMC cess. In a letter to chief minister H D Kumaraswamy he has said that the business in AMPC yards in the state had been adversely affected and the AMPC Act should be suitably amended to abolish the cess.

Bafna has also expressed his concern over the Cotton Corporation of India (CCI) directly purchasing the cotton from farmers. He said the cotton traders were badly hit by CCI's move. "There is harmonious relation between the farmers and traders. The cotton merchants are in trouble as the farmers are diverted to CCI. The CCI purchases only Jayadhar cotton and those growing other varieties have to go to cotton merchants again," he added. The merchants, upset over the farmers not bringing Jayadhar cotton to them are refusing to buy other varieties also.

The farmers are in a fix. This has created a mess in the cotton trading, Bafna said and urged the CM to intervene in the matter.

It may be recalled here that the CCI started purchasing Jayadhar variety of cotton at Rs 1,573 per quintal directly from the farmers and the merchants protested this. They had threatened to stop purchasing other produce also.