Mysore Chamber says no to changes in APMC Act

The Mysore Chamber of Commerce & Industry (MCCI) has opposed the proposed legislation on the Agricultural Produce Marketing Committees (APMCs) in Karnataka.

Voicing the opinion of the chamber and its parent organisation FKCCI, MCCI president H N Ramathirtha said on Tuesday that the traders in Mysore had voiced their protest by organising a bundh against the proposed APMC Act.

He described the act as a "unilateral decision" affecting the interests of farmers, traders and the general public.

Opening the agriculture sector to global firms will be against the interests of the economy, more so the farmers who are ill-equipped to face the marketing might of global firms. It will also destroy the Indian market with mega markets and supermarkets dominating the scene.

"Focus should be placed on amending the act bearing in mind the interests of the economy," he said, placing the chamber's stand at a symposium on "Reforms in the APMC Act", organised by the CII, Nabard and Federation of Farmers' Associations (FFA ).

The symposium was the third in the series of debates between the farmers and traders on the central act, which is yet to be introduced in Karnataka.

Expressing a similar view, Karnataka Agricultural Revenue Commission chairman B Bisilaiah said in his tele-conference from Bangalore that "mere privatisation will create monopolies. APMCs should be continued and strengthened with the required changes".

However, the CII chairman took a divergent stand and said, "Reforms to the APMCs is a significant development. Its delay has affected farmers."

Two academics, Food and Agricultural Marketing Research Academy chairman Gopala Rao and Mysore University's Development Study Centre director D Shrijay Devaraj Urs described the APMC act as a "good change". "Farmers need have no doubts about the reforms. It will help them get rid of government control."

"The present APMC Act came into effect 109 years ago. It is a legacy of the British regime. Only 67 APMCs are functioning in the state, covering only 14 per cent of the agricultural produce. The rest of it is traded in other markets, the total turnover being Rs 60,000 crore. Private traders are already in operation," said Urs.

Senior marketing officer of Government of India's directorate of marketing & standards B Purohit noted that the legislation, in pursuance of the WTO agreement signed by India, was being introduced in the states, the Centre allowing them to make modifications suiting the requirements of its farmers.

"An investment of Rs 2,000 crore is required in the agricultural marketing sector for basic infrastructure. The government or APMCs alone cannot meet the requirement. Hence, the model act. Tamil Nadu, Kerala and Madhya Pradesh have already given effect to it. As both private traders and APMCs will function under the Act, there will be little scope for monopoly in the market. On the other hand, it will create competition and fetch good prices for farmers," Purohit observed.