Ficci, which has prepared a roadmap for agri marketing reforms, said, "Agricultural Produce Marketing Committee (APMC) regulated markets have to co-exist with other marketing channels that are presently shaping up."
The recommendations of the report, submitted to Agriculture Ministry late last month, would come up for discussion when a Ficci delegation meets Agriculture and Food Minister Sharad Pawar on May 12 here, sources said.
The industry body pointed out that there was concern among various stakeholders about changes needed in the functioning and management of the mandis and how to make these markets competitive with other marketing platforms.
It said while allowing private mandis, the government must keep them out of the purview of APMC.
Ficci has also suggested that the present mandis have to be professionally managed and revenue generated in the form of market fees should be utilised specifically for development of mandi infrastructure.
"Infrastructure for ensuring product gradation and sorting has to be developed in the mandis," Ficci said, adding regulated markets should also provide value-added services such as technical know-how, market information, sale of seeds and other inputs.
Some of the steps suggested in the report for benefits of farmers include compulsory use of electronic weighing machines in all mandis including their sub-yards, immediate settlement of dues on the spot and inclusion of more number of farmers in the market committees.
Stating that contract farming is best left to the company and growers, the Ficci roadmap said though the monitoring role of APMCs/ state governments may be desirable, they should not be made party to contracts.
In order to resolve disputes arising out of violation of contract, Ficci said there should be an institutional arrangement to record contractual arrangements, may be at panchayat, state or central level.
The study also asked government to facilitate food processing companies' direct procurement from farmers. Ficci has demanded fiscal incentives for investment made by corporates in providing extension services to farmers.
The chamber has proposed that strategy groups should be set up in every region comprising central and state government officials, private entrepreneurs and farmers to bring about uniformity in implementing APMC reforms across the states.
As of now, 16 states including Tamil Nadu, Maharashtra, Andhra Pradesh, Gujarat and Madhya Pradesh have amended the APMC Act while Bihar and Kerala has abolished the Act. Country's leading agricultural state Punjab has partially amended the APMC Act, a Ficci official said.
