After dallying for about eight months, the Karnataka government on Tuesday cancelled the APMC (agriculture produce market committee) licence to German retail giant Metro Cash & Carry India Pvt Ltd to trade in 112 notified agricultural commodities.
Confirming the development, V B Patil, director, department of agricultural marketing, government of Karnataka, said, “We have issued an order on Tuesday withdrawing the earlier permission given to Metro Cash & Carry to trade in notified agricultural commodities. However, they can continue to sell perishable goods like fresh fruits, vegetables and flowers.”
The order comes after the Karnataka high court directed the state government in February to consider the matter following an impleading petition from the Bangalore Wholesale Foodgrain and Pulses Merchants Association. Initially, Metro Cash & Carry had moved the high court after the government cancelled the licence in January following protests from the merchants.
A spokesperson for the company said they could not comment at this juncture.
The government had given permission to the company to deal with notified commodities on January 18 without the consent of the department of agricultural marketing. However, the permission was withdrawn within 10 days after traders across Bangalore city went on a massive protest. Subsequently, Metro Cash & Carry moved court against the order.
The wholesale traders and merchants of Bangalore had opposed the government's move. According to the APMC Model Act, 2008, no private market yard can function within a 25 km radius from the Yashwantpur regulated market.
The wholesale merchants’ association had argued the government violated the Act and permitted the company to trade in notified commodities.
“We are not against the company selling fresh fruits and vegetables. But, we will not accept them trading in processed goods and commodities like cereals and pulses,” said Ramesh C Lahoti, association president.
The Germany-based company has been making repeated efforts to secure a licence to trade in agricultural commodities for the last eight years in Karnataka.
Metro operates two mammoth stores in Bangalore and is present in Hyderabad, Kolkata, Mumbai and Chandigarh.
