Farmers, experts ask Punjab government to amend APMC Act

Ahead of the Punjab agriculture summit, experts and farmers have asked the SAD-BJP led state government to initiate a major agriculture reform by amending the APMC Act to allow direct crop purchase and setting up of private market yards.
The move will offer a choice to farmers to sell produce "wherever and whoever" they would like to, and would help in fetching remunerative returns for crop, experts said.
"Farmers (in Punjab) should have more choices (to sell their produce). They should not have to depend on mandis...There should be more competition through allowing companies to procure crop and set up more markets which will definitely be beneficial for Punjab farmers," Indian Institute of Management (IIM), (Ahmedabad) Centre for Management in Agriculture, Chairperson, Sukhpal Singh told PTI today.

Punjab government is going to hold a Progressive Punjab Agriculture Summit (PPAS) from February 16-19 in order to chalk out a pro-farmer action plan for farm development.
The major advantage of allowing direct purchase from farmers will be elimination of intermediaries like commission agents in marketing process.
"If direct purchase from farmers is allowed, middlemen who corner major share of commodity price will be eliminated which will be beneficial for both farmers and consumers," Confederation of Potato seed farmers (Punjab), President S S Bhatti said.

He said potato growers at present are getting Rs 6-7 per kg while crop is sold at a rate of Rs 12-13 per kg in the market and the difference is cornered by middlemen.

With private market yards, farmers will have the option to sell their crop to other than the notified markets of Punjab Mandi Board. This would help in reducing their expenses on Arthiyas commission, loading, unloading, cleaning etc.
Experts further said agriculture reforms are also necessary if Punjab government wanted to make its ambitious crop diversification programme successful in the state.
The crucial amendment in the Punjab APMC Act, 1961 has been hanging fire for the last several years with farm experts alleging that the state government did not carry out amendments under the alleged pressure of commission agents.
Necessary amendments are required to be carried out in APMC Act by framing rules and laws before allowing setting up of private market yards and direct purchase.

Punjab Mandi Board had already sent proposals to cabinet for its approval to carry out amendment in APMC Act, but no decision has been taken so far, official sources said.
"On a couple of occasions, state government showed some interest in amending the law. Proposal for amending the law was even sent to the state cabinet but nothing happened," sources said.
Sixteen states including Gujarat, Maharashtra and Karnataka have carried out amendments in APMC Act.