The move by the Karnataka government to issue an APMC (Agriculture Produce Market Committee) licence to Metro Cash and Carry to trade in 112 notified commodities has taken an ugly turn, with hordes of traders threatening to go on a state-wide agitation and shut shops.
The Germany-based Metro Cash and Carry has been making repeated efforts to secure the licence for the last eight years in Karnataka and finally managed to get it on January 18. The traders are of the view that the state government has violated the APMC Act in granting this licence to the wholesale retailer. Metro operates two mammoth stores in Bangalore and is present in Hyderabad, Kolkata and Mumbai.
In the wake of threats by a large section of traders, Karnataka chief minister B S Yeddyurappa has convened a meeting with the traders and agri-marketing department officials tomorrow to discuss the issue. In the Yeshwanthpur APMC yard, the largest in Karnataka, around 3,000 traders operate daily.
The chief minister has assured the traders from this APMC yard to respond positively to their concerns, said Ramesh Chandra Lahoti, president, Bangalore Wholesale Food Grains and Pulses Merchants’ Association.
Metro, however, said it had applied for a licence to deal in all the notified agricultural products under the APMC Act after the law was amended in 2008. “After more than two years, the company has received relevant license following due process of law,” a spokesperson for Metro said. According to the amendment, Metro was allowed to trade only in perishable commodities like fresh fruits and vegetables.
“We have been opposing the entry of multinationals in agri marketing. But, the state government has violated all norms while granting licence to Metro Cash & Carry to transact in all the 112 notified commodities. We strongly oppose the government’s move and will go on agitation if they do not withdraw the license immediately,” Lahoti told Business Standard.
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He said while amending of the Act, traders had agreed to permit Metro to trade only in the fresh fruits and vegetables. By granting licence to Metro allowing it to trade in all 112 notified commodities has violated the rule.
According to Rule 87 (B) of the APMC Amendment Act of 2008, the government had accepted the traders’ suggestion for allowing a private market to be located outside a radius of 25 km with an investment of Rs 100 crore and minimum of 100 acres land for the purpose in Bangalore city. Whereas, the Metro Cash & Carry is located just two kilometers away from the APMC yard in Yeshwantpur, Bharat Kumar R Shah, chairman, Association Coordination Committee, Federation of Karnataka Chambers of Commerce and Industry said.
“FKCCI has discussed the issue with the Chief Minister, APMC minister, Director of Agricultural Marketing and Secretary APMC Bangalore. The fact is that they have accepted the mistake and have asked for time to rectify it. And moreover, when electronics items/FMCG/Auto parts, textiles are stored and sold how can it be treated as private market yard? The government had admitted in the high court that Metro violated FIPB rules and selling directly to consumers,” said N S Srinivasa Murthy, president, FKCCI.