CII today arranged a Seminar on Reforms in the APMC (Agricultural Produce Market Committee) Act, and its impact in the Southern States. This is an initiative of the Agri Business Sub-Committee, CII-Southern Region.Speaking at the occasion, Mr. Shankarlal Master, Chairman-International Society for Agricultural Marketing stated Agricultural sector remains in immediate requirement of reforms by the respective State federal governments to assist drive the economy to a greater growth rate that is anticipated by the policy makers, however a comprehensive agenda for reforms in this essential sector is yet to emerge. For this reason, the need for Agriculture to be made a main topic and not a state subject, therefore alienating it from politics, stated Mr. Expert. Contract farming must be encouraged as it will help bring technology and modern practices into the farming sector -believed Mr. Guru.The APMC Act in each state of India requires all farming products to be offered just in government-
managed markets. These markets impose considerable taxes on buyers, in addition to commissions and fees taken by intermediaries, but usually offer little service in locations such as price discovery, grading or assessment. A crucial impact of this policy is the failure of personal sector processors and merchants to incorporate their enterprises directly with farmers or other sellers, eliminating intermediaries in the procedure. Farmers also are not able to legally participate in agreements with buyers. This leaves no rewards for farmers to upgrade, and hinders personal and foreign financial investments in the food procedure sector.Also attending to the audience was Mr. Sivakumar, Chairman Agri Company Sub-Committee, CII-Southern Region and Chief Executive-Agri, ITC Ltd. Said that Agri service in India is at a shift point. Having cruised through the scarcity economy to an economy with surplus in grains, it is necessary that Federal governments at the Centre and State acknowledge the requirement for inclusive development to take farming forward in India. Setting the context for the day’s conversation, Mr. Sivakumar highlighted that in spite of employing about 57%of the population of the nation, farming on contributes 27%to the GDP of India. This distortion makes farming not a profitable work generator and for this reason, keeping with the international view, India needs to carve out chances in agri-exports sector. Contract farming and direct marketing to retail chains and processing systems are the requirement of the hour he said. Laws to keep speed with these needs are needed, which require alternative marketing mechanisms. Reforms in the APMC Act are suggested in various fields, he added.Making 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 efficient and effective distribution system for agri-produce and arrangement for supply-demand openness. Since the main objective of the APMC Act was to avoid exploitation of farmers by various intermediaries, reforms were required in the Act, with altering face of farming and the agricultural supply chain, opined Prof Raghunath. India is the largest producer of veggie worldwide, with a total share of 15% of worldwide fruit and vegetables. 8%of world’s fruits are produced in India, ranking it 2nd worldwide market. In spite of this, there is a high cumulative waste of 40% in India, notified Prof. Raghunath. Insufficient facilities and absence of arranged supply chain were the main cause for such a disparity, he said. Therefore, reforms in this sector requirement to overtake the rate of development in the economy and dis-intermediation and participation of organized players in the sector will remove the lacunae, opined Prof. Raghunath.Centre asks states to modify APMC Act In a relocate to permit farmers to directly offer their fruit and vegetables to market, contract farming and establishing of competitive markets in personal and cooperative sector, the Centre has asked the state government to modify the Agricultural Produce Marketing
Act.Under the present Act, the processing market
can not purchase straight from farmers. The farmer is also restricted from participating in direct agreement with any maker due to the fact that the fruit and vegetables is needed to be canalised through controlled markets. These constraints are acting as a disincentive to farmers, trade and industries.The government has
just recently authorized a main sector plan entitled”Development/strengthening of farming marketing infrastructure, grading and standardisation.”Under the plan, credit linked investment aid will be supplied on the capital cost of general or commodity specific facilities for marketing of agricultural products and for strengthening and modernisation of existing agricultural markets, wholesale, rural routine or in tribal areas.The plan is connected to reforms in state law dealing with farming markets(APMC Act)
. Support under the brand-new scheme will be provided in those states that modify the APMC Act.The Centre has asked the state governments to inform regarding whether needed modifications to the APMC Act have actually been performed, in order to notify the reforming states for applicability of the scheme.Along with the Centre, the market is likewise thinking about
the modification to the APMC Act as it restricts the growth of sell agricultural products.”The policy regime referring to internal trade is especially limiting. The agricultural sector
continues to be hamstrung by a plethora of controls, which were presented throughout the age of lacks,”said the PHDCCI.Meanwhile, a decentralised system of procuring wheat and rice would make the Public Circulation System more cost reliable,
the federal government has stated.
CII today arranged 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 Business Sub-Committee, CII-Southern Region.Speaking at the occasion, Mr. Shankarlal Expert, Chairman-International Society for Agricultural Marketing said Agricultural sector is in immediate need of reforms by the respective State federal governments to assist drive the economy to a higher development rate that is expected by the policy makers, however a comprehensive program for reforms in this important sector is yet to emerge. Given that the primary objective of the APMC Act was to avoid exploitation of farmers by various intermediaries, reforms were required in the Act, with changing face of agriculture and the agricultural supply chain, believed Prof Raghunath. These restrictions are acting as a disincentive to farmers, trade and industries.The federal government has
recently approved a central sector plan entitled”Development/strengthening of agricultural marketing facilities, grading and standardisation. Help under the new scheme will be offered in those states that amend the APMC Act.The Centre has asked the state federal governments to notify as to whether necessary changes to the APMC Act have actually been carried out, in order to notify the reforming states for applicability of the scheme.Along with the Centre, the industry is likewise interested in
the amendment to the APMC Act as it limits the development of trade in agricultural products.
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