The Hindu : Karnataka / Bangalore News : ‘Amendment to Act is a blow to APMCs’

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Monday, Mar 24, 2008
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Karnataka

Karnataka - Bangalore

‘Amendment to Act is a blow to APMCs’

M. Raghuram

It will push them into direct competition with multinational markets: leader

Bangalore: The APMC was one of the last bastions of state protection for the Indian farmer. But the amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 has now opened agriculture to private market forces. The amended Act came into force on March 19, 2008.

The amendment will spur establishment of new private APMCs, where farmers will be in direct contact with the markets, and market functionaries can contract them to grow the required grain, fruits, vegetables, legumes and spices on a buy-back scheme. This amendment had seen some of the most acrimonious debates on the floor of the Legislative Assembly and Council.

‘Cosmetic changes’

The APMC had so far acted as a cushion to the farmers in the event of price fluctuation as they used to pledge their produce to it and take advance payments. The amendment has raised the advance limit from Rs. 25,000 to Rs. 2 lakh at an interest ranging between 4 and 10 per cent and the period of advance payment has been extended from 90 days to 180 days. The amendment has also extended the period of “interest less advance” from one month to three months. “All these are cosmetic changes. The amendment will push the APMCs into direct competition with multinational markets for which they are not prepared now,” said president of the Yeshwanthpur APMC Yard E. Krishnappa. He said the MNC APMCs would never venture into the suburban areas or the rural areas as they would target upmarket consumers. He said the 25 km exclusive zone given to the Yeshwanthpur yard did not mean anything as the companies like Metro Cash and Carry was the immediate neighbour of the Yeshwanthpur yard. The same condition does not apply to places other than Bangalore.

According to general secretary of the Yeshwanthpur yard M.A. Nagaraj, Rule 87C in the amendment should be dropped. This rule would deal a death blow to the spirit of APMC movement. “This rule gives access to the wholesale market functionaries to directly come in contact with the farmers which will create unfair market practices. The farmers might not get the right prices for their produce. It will also alter the crop pattern and variety as the MNC markets will contract the farmers to grow high value produce”. This might affect the food security of the masses, he said.

President of the Karnataka Rajya Raitha Sangha Puttannaiah told The Hindu that food security would be in serious jeopardy as the MNC markets would corner not just the fruit and vegetable crops by contract farming, but also the market.

“Initially the consumers might get small benefits in terms of value for their money but sooner or later the exploitation of farmers and consumers will begin in the form of cuts in procurement prices and in volumes of commodities from the farmers and fleecing the consumers with high prices of essential commodities.”

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