Gujarat amends APM Act

The Gujarat assembly passed the much-awaited amendment bill in the Gujarat Agricultural Produce Market Act 1964 on Thursday a day before the closing day of the ongoing Assembly session.

The newly formed Gujarat Agricultural Produce Markets (Amendment) Act 2007 amends a number of sections in the earlier act.

The amended also includes definitions of terms like contract farming, market export, exporter, import, importer, private market, transportation, market charges and value addition.

The government has amended the earlier act to bring in the necessary changes provided in the Model Act on APMCs created on the basis of a central government committee headed by Shankarlal Guru.

The main feature of the amendment is that the government has opened the doors for the agro processors, private markets, corporate players and exporters to directly deal with the farmers. Contract farming has also been given a prime focus.

The government has brought amendments in the section 42 (Market fees) of the 1964 act as well as section 45 (private markets, E-Market, direct market) section 46 (farmers-buyers market), section 20 (special market), section 47 (common licence) and chapter 7 (contract farming) of the earlier act.

Amendment in chapter 7 (contract farming) of the earlier act allows direct access to farmer's produce through contract farming by agro processors and exporters and value addition centres.

Amendments to some of the sections removes intermediaries from the agriculture trade and provides the needed competition in the agriculture market ending the control of the Agro Produce Market Committees. The state government believes that the 1964 Act excluded competition and the markets under it merely acted as procurement points instead of improving the services to farmers. Now that the government has allowed the establishment of e-markets, special markets, direct markets the farmers of the state has wider choice in where to sell. This also means that the farmers of the state will be able to get better prices of their produce.

The amended act provides for private markets in respect of trade in vegetables and fruits; export of agricultural produce; and value addition to agricultural produce.

The government says that the food processing industry will benefit from the amendment and it will act as a platform for the farmers to sell their produce at a better price.

The government claims that the amendment in the 1964 Act will enable the farmers to directly approach the buyers such as food processors and this will result in lesser wastage of the produce and it will also spare the farmers from the transportation expenditures as the food processing units can directly get the agri-produce from the farms to their units.

Moreover, the amendment will enable the farmers to directly deal with the corporates for contract farming and thus they will be exposed to advanced technology in farming, better fertilisers and pesticides provided by the private sponsors.

The farmers will now be able to decide whether to sell their produce in the APMCs or in the open markets depending on the prices they are getting.