CII today organized a Workshop on Reforms in the APMC (Agricultural Produce Market Committee) Act, and its impact in the Southern States. This is an effort of the Agri Service Sub-Committee, CII-Southern Region.
Speaking at the celebration, Mr. Shankarlal Expert, Chairman-International Society for Agricultural Marketing stated Agricultural sector remains in urgent requirement of reforms by the respective State governments to help drive the economy to a greater development rate that is anticipated by the policy makers, however a comprehensive program for reforms in this crucial sector is yet to emerge. Hence, the need for Farming to be made a central subject and not a state topic, thus alienating it from politics, stated Mr. Guru. Contract farming must be motivated as it will assist bring technology and modern-day practices into the agriculture sector - opined Mr. Guru.
The APMC Act in each state of India requires all farming products to be sold only in federal government - controlled markets. These markets enforce significant taxes on buyers, in addition to commissions and fees taken by middlemen, but normally offer little service in areas such as cost discovery, grading or inspection. A crucial impact of this regulation is the failure of private sector processors and retailers to integrate their enterprises directly with farmers or other sellers, removing middlemen while doing so. Farmers also are unable to legally participate in agreements with purchasers. This leaves no rewards for farmers to upgrade, and inhibits private and foreign investments in the food process sector.
Likewise resolving the audience was Mr. Sivakumar, Chairman Agri Company Sub-Committee, CII-Southern Region and President - Agri, ITC Ltd. Said that Agri service in India is at a transition point. Having actually cruised through the lack economy to an economy with surplus in grains, it is very important that Governments at the Centre and State acknowledge the requirement for inclusive growth to take agriculture forward in India. Setting the context for the day's conversation, Mr. Sivakumar stressed that in spite of employing about 57% of the population of the country, agriculture on contributes 27% to the GDP of India. This distortion makes agriculture not a lucrative employment generator and for this reason, keeping with the worldwide view, India needs to carve out chances in agri-exports sector. Agreement farming and direct marketing to retail chains and processing units are the requirement of the hour he said. Laws to equal these needs are needed, which require alternative marketing systems. For this reason, reforms in the APMC Act are suggested in numerous fields, he added.
Making https://www.balotrade.com/computer-hardware-software-c1 a discussion on "Lining up State Policies with emerging new marketing designs", Prof. S Raghunath from the Indian Institute of Management-Bangalore, highlighted the need for an effective and efficient distribution system for agri-produce and arrangement for supply-demand openness. Since the primary goal of the APMC Act was to prevent exploitation of farmers by different intermediaries, reforms were needed in the Act, with altering face of farming and the farming supply chain, opined Prof Raghunath. India is the largest manufacturer of veggie in the world, with an overall share of 15% of global fruit and vegetables. 8% of world's fruits are produced in India, ranking it second on the planet market. In spite of this, there is a high cumulative wastage of 40% in India, notified Prof. Raghunath. Inadequate infrastructure and absence of arranged supply chain were the main cause for such a variation, he stated. Hence, reforms in this sector need to catch up with the pace of advancement in the economy and dis-intermediation and participation of organized players in the sector will eliminate the lacunae, opined Prof. Raghunath.
Centre asks states to amend APMC Act
In a transfer to allow farmers to straight offer their fruit and vegetables to industry, agreement farming and setting up of competitive markets in personal and cooperative sector, the Centre has actually asked the state government to change the Agricultural Produce Marketing Act.
Under today Act, the processing market can not purchase straight from farmers. The farmer is likewise limited from entering into direct agreement with any manufacturer because the fruit and vegetables is needed to be canalised through controlled markets. These constraints are serving as a disincentive to farmers, trade and markets.
The federal government has actually just recently approved a central sector plan entitled "Development/strengthening of agricultural marketing facilities, grading and standardisation."
Under the plan, credit linked investment aid shall be provided on the capital expense of basic or commodity specific infrastructure for marketing of agricultural products and for reinforcing and modernisation of existing agricultural markets, wholesale, rural regular or in tribal areas.
The scheme is linked to reforms in state law dealing with farming markets (APMC Act). Support under the new plan will be supplied in those states that modify the APMC Act.
The Centre has actually asked the state governments to notify regarding whether necessary modifications to the APMC Act have been performed, in order to notify the reforming states for applicability of the plan.
In addition to the Centre, the industry is likewise interested in the modification to the APMC Serve as it restricts the growth of trade in farming products.
"The policy routine pertaining to internal trade is especially limiting. The farming sector continues to be hamstrung by a huge selection of controls, which were presented during the era of shortages," said the PHDCCI.
On the other hand, a decentralised system of obtaining wheat and rice would make the Public Circulation System more expense effective, the government has actually stated.