)
The state of Maharashtra and Gujarat may require strong political will to amend the APMC act to liberalise the trade of agricultural commodities.
According to officials, the APMC committees of both the states have strongly opposed any amendment for drastic reduction of market fee and commission charges paid in the Agricultural Produce Marketing Committee (APMC) markets.
Officials explained that the APMCs with their strong political patronage have refused to let go the hold on earning revenue and liberalise the trade.
Meanwhile, some of the states like Karnataka, Andhra Pradesh, and Uttarakhand have gone ahead with liberalisation of the APMC.
As per the liberalized model, the ministry of agriculture proposes abolition of the present system of licensing of traders / commission agents by substituting it with system of registration.
Accordingly, there will be a single unified registration for the main market and collection centres across the states to bring down the transaction charges. This is besides drastic reduction in the market fee and commission charges paid in the market yard.
The ministry had proposed to introduce and implement Agricultural Produce Inter State Trade and Commerce (Development and Regulation) Bill in all states with immediate effect for enabling trading of perishable agricultural commodities to start with single unified registration.
As per the recommendations of the Committee of the State Agricultural Marketing Ministers, the ministries has sought recommendations from all the states on these proposals with the objective to better remunerise the farming community and make the pricing of the agricultural commodities competitive in the global market to improve trade.
Accordingly, market fee/cess including rural development fund, social development fund and purchase tax should be maximum 2% of the value of the agricultural produce.
The commission charges should not be more than 2% for food grains/oil seeds and 4% for fruits and vegetables. In some states according to official sources, all inclusive these charges work up to around 15% and on an average rule around 5-8% of the total value of the produce.
Besides, the central government had prepared a draft note to modify the Agricultural Produce Marketing cooperative Act (APMC) for freeing the sale of fruits and vegetables from its ambit and deregulate their trading and marketing.
This followed the decision made by the government to deregulate trading of fruits and vegetables and in the process slash the taxes and other charges paid while bringing the produce from farm gate to the consumers. Both the states have opposed this move as well.
