 "U'khand brings fruits, vegetables out of APMC ambit")
The state of Uttarakhand has promptly deregulated trading of fruits and vegetables in the state heeding the recommendation and draft note sent by the central government to all 12 states last week.
According to official sources, the state has completely deregulated the trading of fruits and vegetables and taken them out of the ambit of Agricultural Produce Marketing cooperative Act (APMC) Act.
The state has adopted this route as it is possible to completely deregulate these items just by a notification that these items are taken out of the schedule of the agricultural commodities from the APMC Act. This will not require any legislative amendment of any Act.
As per the note sent to various states last week, the central government has specifically directed 12 congress party ruled states two options for this. One is to completely deregulate the trading and marketing of fruits and vegetables including potatoes and onion both outside and indie the APMC market yard.
The states could do this without any amendment in the Act and are empowered as per the Act itself to add or delete any agricultural commodities regulated under the APMC Act any time from the schedule just by a notification.
The second option is to partially deregulate trading of the fruits and vegetables so that they could be sold inside the APMC Act under the regulation of the4 APMC Act. Simultaneously, outside the regulation of the APMC Act, these farmers could sell the produce outside the APMC market yard and create new markets.
Thus they get to serve the captive markets as well as the make direct selling points outside the AMC market yard with the consumers. However this could require an amendment of the e APMC act or an ordinance by the states
However, the central government is not in favour of complete deregulation of the trading of such commodities as the sellers of fruits and vegetables will lose their captive market which they have built over years inside the APMC yard.
On the other hand, they will incur extra costs in building separate market outside the APMC yard. This is because once taken out of the APMC Act, the fruits and vegetables sellers cannot trade inside the APMC market yard without license and thus lose their captive market built over years, explained an official source.
According to official sources, the state has completely deregulated the trading of fruits and vegetables and taken them out of the ambit of Agricultural Produce Marketing cooperative Act (APMC) Act.
The state has adopted this route as it is possible to completely deregulate these items just by a notification that these items are taken out of the schedule of the agricultural commodities from the APMC Act. This will not require any legislative amendment of any Act.
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While Uttarakhand becomes the first state to do this, the model APMC Act has been adopted by 16 states while Kerala and Manipur do not have AMC Market concept and Bihar repealed the Act.
As per the note sent to various states last week, the central government has specifically directed 12 congress party ruled states two options for this. One is to completely deregulate the trading and marketing of fruits and vegetables including potatoes and onion both outside and indie the APMC market yard.
The states could do this without any amendment in the Act and are empowered as per the Act itself to add or delete any agricultural commodities regulated under the APMC Act any time from the schedule just by a notification.
The second option is to partially deregulate trading of the fruits and vegetables so that they could be sold inside the APMC Act under the regulation of the4 APMC Act. Simultaneously, outside the regulation of the APMC Act, these farmers could sell the produce outside the APMC market yard and create new markets.
Thus they get to serve the captive markets as well as the make direct selling points outside the AMC market yard with the consumers. However this could require an amendment of the e APMC act or an ordinance by the states
However, the central government is not in favour of complete deregulation of the trading of such commodities as the sellers of fruits and vegetables will lose their captive market which they have built over years inside the APMC yard.
On the other hand, they will incur extra costs in building separate market outside the APMC yard. This is because once taken out of the APMC Act, the fruits and vegetables sellers cannot trade inside the APMC market yard without license and thus lose their captive market built over years, explained an official source.