Traders oppose changes in Karnataka APMC Act

The Bangalore Wholesale Grain Merchants' Association fears that the proposed amendment to the Agriculture Produce Marketing Committee Act is likely to jeopardise the employment scene in the agriculture marketing sector.

"The fallout could also greatly impact small retailers and farmers," said R C Lahoti, President, Bangalore Wholesale Grain Merchants Association.

Bangalore has 1.5 lakh retailers directly connected to agricultural marketing and each shop employs four to six persons. Plus, almost 10 -15 lakh casual labourers and more than 1 lakh headload workers are employed in the APMC yards.

"The agricultural retail market provides for more than 18 crore employment in the country but if the new act comes into force, over 90 per cent will loose jobs," said Lahoti.

The model APMC Act will permit private and corporate bodies to establish marketing networks for agriculture produce and change land leasing laws to facilitate renting by private companies.

"At present, what the APMC needs is not amendment to the act but improvement in infrastructure and cold storage facilities," feels Lahoti.

The trading community contributes over Rs 400 crore as revenue to the government which has so far spent Rs 1500 crore to build and develop infrastructure in the yards.

"The government is talking of encouraging private players in the agri-marketing sector by amending the act. Instead of supporting MNCs in the name of ushering in private participation, why not encourage us by incentives," said Lahoti Manohar, chairman, State Tax Commission of FKCCI, said that most of the dealers are not exclusively dealing in commodities which come under the APMC Act but also deal in commodities which come under commercial taxes. So it might have its impact on the revenue collection of the government.

He said, "FDI in retail trade will undermine the traditional marketing system."