Horticulture funds lying unused as states fail to amend laws

Most states have not amended their laws relating to agricultural produce marketing committees (APMC) and therefore cannot access funds available for the technology mission on horticulture from the government of India, Radha Singh, secretary, department of agriculture and cooperation, ministry of agriculture, said here today at a lecture organised by the Indian Chamber of Commerce (ICC).

Singh said, "All the state governments have been asked to amend the APMC at the earliest to provide institutional support to direct marketing and contract farming arrangements."

She stressed that the marketing system should be liberalised so that farmers have the option to choose the market to sell products.

"Farmers would go to the market that pays more so the new scheme would fetch farmers better prices for goods," she added.

The Centre has decided to allocated Rs 20,000 crore for the technology mission on horticulture.

It has earmarked additional fund of upto Rs 10,000 crore fund for micro-irrigation projects as still more than 60 per cent of the agricultural activity was rain fed, she added.

Only a few states like Harayana, Punjab, Karnataka, Madhya Pradesh and Kerala have already come up with amendments in this regard, she said.

Most states, including West Bengal, have started working on this issue, so the funds were lying unused.

The export potential of agricultural and horticultural commodities was very high as few countries had such a diversified product base, Singh said.

"We should concentrate upon the price competitiveness, quality and selection on the destination country for the best results as agricultural product imports will be completely liberalised soon," said Singh.

She said central and state government departments, apex bodies in industry and other related organisations would have to work jointly to select the product which had the highest comparative advantage in each state and the destination country where it could be exported at the highest price.

She urged exporters to look at large markets in south-east and west Asia not merely at USA or Europe.

Bengal has not amended the laws, as it is still studying a report by the committee set up by the state government in this regard, admitted Sukhbilas Barma, secretary of the agriculture department of West Bengal.

"A significant positive step in this regard is expected shortly," Barma promised.

West Bengal does not have the 'mandi' system as it exists in other states in the country.

Instead goods are sold through the regulated market system.