Centre asks states to allow pvt, e-marketing of agri items

In order to curb price rise in food items and ensure remunerative rates to farmers, the Centre has asked states to amend laws to permit new agri-marketing platforms, including allowing private as well as electronic markets.
State governments have also been asked to ensure a single licence and registration for marketing of agriculture produce for whole state.
In a recent advisory, the Agriculture Ministry has emphasised the need to accelerate agri-marketing reforms in view of concerns of rising food prices and at the same time lower remunerative price to farmers.
"The root of the issue is intrinsically linked with the overall functioning of the agri-marketing ecosystem in our country. Unfortunately, over the years, this sector has gone mostly unnurtured and has a result become vulnerable to market distortions. You will agree, it is high time that the situation is rectified," the advisory said.

Calling upon the state governments to pursue the reforms in agri-marketing system in all earnestness, the advisory said: "With regard to private markets, terminal markets and electronic markets, states may amend their respective acts and frame rules to facilitate the setting up of these markets."
Such markets should have the authority to levy and retain the market fee, and grant licenses for their respective markets, it said.

All licences/registration issued at state level by APMC should be made valid for these private market yards, terminal and electronic markets. Besides, the mechanism for obtaining permission for such markets should be simplified, it said.

These licences should be issued by state level authorities and require any clearance from any of the APMCs in the state, it added. An Agricultural Produce Market Committee is a board established by state governments.
State governments have been asked to liberalise registration of directing marketing, remove all restrictions on movement on agri-produce and set up 'single market' for agri-produce.
"Entire state should be declared as 'single market' rather than being fragmented into many markets. The act should enable issue of single license valid for the whole state," the advisory said, adding that such license should be issued by an authority at the state level.

Additionally, possibility of licences for the whole state being issued by APMCs could be explored as also all existing licences should automatically be upgraded to state level licences or at least on request, it said.