 "Karnataka traders seek withdrawal of new APMC Act")
Traders and grain merchants across the state are planning to suspend trading on Monday to protest against the implementation of the amended Agricultural Produce Marketing Committee (APMC) Act. Trading in the marketing yards of Hyderabad Karnataka districts has been suspended since July 8.
The traders are demanding withdrawal of the APMC Act, which they say has been amended hurriedly without consulting farmers and traders. The amended law threatened the livelihood of hundreds of traders and merchants, said Ramesh Chandra Lahoti, president of the Bangalore Wholesale Foodgrains and Pulses Association.
According to the Hyderabad Karnataka Chamber of Commerce and Industry, Gulbarga, the APMC Act enables multinational companies to trade in notified agricultural commodities and restricts local traders, who have to surrender their licences and apply afresh every year.
The Karnataka Assembly approved amendments to the APMC Act of 1966 in July 2013 and the new law came into effect in January 2014. According to the amended Section 72 of the Act, the state government allows companies to set up private market yards with an investment of Rs 100 crore each.
Four companies, Metro Cash & Carry, Reliance Fresh, Nilgiris and Mangalore Chemicals and Fertilisers, have applied for licences to open market yards in the Tumkur, Kolar, Mysore and Belgaum districts. They can procure produce directly from farmers.
“The APMC Act will lead to privatisation of APMC yards in the state as traders will have to surrender their licences and apply afresh. The new law also enables someone to take a licence for the entire state and conduct online trading from anywhere in the country,” said Amarnath C Patil, secretary of the Hyderabad Karnataka Chamber of Commerce and Industry.
He said the government had issued a licence to the Bangalore-based Rashtriya E-Marketing Services Pvt Ltd to operate as a middleman and this company was trying to monopolise the trade. Chandrashekar Tallalli, a dal mill owner from Gulbarga, said there were nationwide protests against the implementation of the new APMC Act. Following protests by farmers in Maharashtra, Rajasthan, Punjab, Haryana and Uttar Pradesh, the implementation of the new act had been given up, he said.
“We have submitted a memorandum to Chief Minister Siddaramaiah and have brought to his notice the fact that the APMC Act would enable multinationals like Walmart, Cargill and Monsanto to take control of agriculture marketing, which will lead to exploitation of both farmers and consumers. We have urged him to withdraw the amendment immediately,” said Basavarj Ingin, president of the Karnataka State Red Gram Growers’ Association.
Lahoti said the traders would suspend activity across the state on Monday, to protest against the law. The Federation of Karnataka Chambers of Commerce and Industry, Karnataka Pranta Raitha Sangha, Karnataka Rajya Raitha Sangha, Karnataka Pradesh Red Gram Growers Association, Swadeshi Jagran Manch and Bangalore Wholesale Foodgrains and Pulses Association have extended their support to the indefinite stir.
“The government is trying to eliminate middlemen by amending the APMC Act but it is allowing multinational companies to take over the agricultural marketing system. Anybody can trade in agricultural commodities from anywhere and farmers will not have any control over their produce,” Patil added.
The traders are demanding withdrawal of the APMC Act, which they say has been amended hurriedly without consulting farmers and traders. The amended law threatened the livelihood of hundreds of traders and merchants, said Ramesh Chandra Lahoti, president of the Bangalore Wholesale Foodgrains and Pulses Association.
According to the Hyderabad Karnataka Chamber of Commerce and Industry, Gulbarga, the APMC Act enables multinational companies to trade in notified agricultural commodities and restricts local traders, who have to surrender their licences and apply afresh every year.
The Karnataka Assembly approved amendments to the APMC Act of 1966 in July 2013 and the new law came into effect in January 2014. According to the amended Section 72 of the Act, the state government allows companies to set up private market yards with an investment of Rs 100 crore each.
Four companies, Metro Cash & Carry, Reliance Fresh, Nilgiris and Mangalore Chemicals and Fertilisers, have applied for licences to open market yards in the Tumkur, Kolar, Mysore and Belgaum districts. They can procure produce directly from farmers.
“The APMC Act will lead to privatisation of APMC yards in the state as traders will have to surrender their licences and apply afresh. The new law also enables someone to take a licence for the entire state and conduct online trading from anywhere in the country,” said Amarnath C Patil, secretary of the Hyderabad Karnataka Chamber of Commerce and Industry.
He said the government had issued a licence to the Bangalore-based Rashtriya E-Marketing Services Pvt Ltd to operate as a middleman and this company was trying to monopolise the trade. Chandrashekar Tallalli, a dal mill owner from Gulbarga, said there were nationwide protests against the implementation of the new APMC Act. Following protests by farmers in Maharashtra, Rajasthan, Punjab, Haryana and Uttar Pradesh, the implementation of the new act had been given up, he said.
“We have submitted a memorandum to Chief Minister Siddaramaiah and have brought to his notice the fact that the APMC Act would enable multinationals like Walmart, Cargill and Monsanto to take control of agriculture marketing, which will lead to exploitation of both farmers and consumers. We have urged him to withdraw the amendment immediately,” said Basavarj Ingin, president of the Karnataka State Red Gram Growers’ Association.
Lahoti said the traders would suspend activity across the state on Monday, to protest against the law. The Federation of Karnataka Chambers of Commerce and Industry, Karnataka Pranta Raitha Sangha, Karnataka Rajya Raitha Sangha, Karnataka Pradesh Red Gram Growers Association, Swadeshi Jagran Manch and Bangalore Wholesale Foodgrains and Pulses Association have extended their support to the indefinite stir.
“The government is trying to eliminate middlemen by amending the APMC Act but it is allowing multinational companies to take over the agricultural marketing system. Anybody can trade in agricultural commodities from anywhere and farmers will not have any control over their produce,” Patil added.