'Private spot markets to benefit APMC, farmers'

The setting up of private spot markets in the country is likely to benefit Agricultural Produce Marketing Committees (APMC) Babubhai Patel, chairman of the Ahmedabad-based APMC said.

"We welcome private competition as it will create a healthy atmosphere for excellence in services to farmers and in extending benefits to customers," Patel said.

In March, the Gujarat government approved the Gujarat Agriculture Produce Markets (Amendment) Bill, 2007, allowing private players to purchase farmers' produce directly.

APMCs, according to Patel, are likely to survive competition from private players because of the strong confidence reposed by the farming community over several decades.

"Private players would not be a threat to our existence but will complement us in fetching the best price for farmers' produce," he said.

The co-existence of APMC market along with private spot markets would not help farmers in getting better prices but also access to overseas buyers through large private players in these markets.

Over time, farmers would also focus on improving the quality of their produce as private players including food majors are wont to look for better quality foodstuffs, Patel said.

"APMCs always tried to protect farmers from undue exploitation and worked for their interests but, in today's scenario, farmers also need access to global markets," Patel said.

Ahmedabad's APMC has already set into motion its expansion drive to cover most of physical markets in and around the district, he said.

"We are shortly going to open a foodgrains market at Jetalpur near Ahmedabad at a cost of Rs 21 crore. It will be developed as an inter-state market for wheat, rice and millets," Patel said.

At present, the APMC market has a presence in fruits, vegetables, onions and potatoes.

Wheat, rice and bajra from Punjab, Rajasthan, Madhya Pradesh and several parts of Gujarat would be brought in for physical trading at this market spread over 108,000 square meter area, he said.

Gujarat is one of the major wheat consuming states in the country. The grains market would also facilitate market access to paddy growers from the central Gujarat region, he said.