Bihar mandis in 'deplorable' state after repeal of APMC Act: Report

At the height of the farmers’ agitation against the three farm Acts in 2020, many commentators had pointed to Bihar's abolition of the Agriculture Produce Marketing Committee (APMC) Act as an example of deregulating the farm markets.

 

However, an analysis done as part of a recent draft national policy framework for agriculture marketing said that after the Act ended in the state in 2006, the APMCs there have been in a “deplorable” condition.

 

APMC Acts are legislations that govern the functioning of mandis in most states and regulate buying and selling of agricultural produce.

 

The draft also talked of a ‘dire’ need to improve the agriculture marketing ecosystem in the state. This will help tap the immense potential for processing of fruits, vegetables and ‘makhana’ (fox nut) in the state to bring better return to farmers and create job opportunities in the rural sector.

   

The draft said that at the time of repeal of the state APMC Act in 2006, there were around 95 APMCs under the state agriculture marketing board. Of these, 54 APMCs were established with market-yard facilities, whereas 41 APMCs were running in rented premises. With the repeal of the APMC Act, 41 APMCs that were running in rented premises completely stopped functioning. Although the balance 54 APMC markets still exist, they are in a deplorable situation.

 

It further added that functioning of these 54 surviving APMC markets are under control of the ‘administrator’ appointed by the Bihar government. Sub-divisional officers have been made incharge of these 54 APMC markets.

 

Since regulation on notified agricultural produce has been withdrawn, in consequence, agricultural produce can now be traded anywhere by anyone.

 

The draft welcomed a decision of the Bihar government taken a few months back — on September 12 — to establish a ‘marketing directorate’ under the state agriculture department. It would have the mandate to seek reasonable price realisation for farmers, promoting storage facility, value addition, processing and development of grameen haats, among others.

 

“This is a good decision,” the draft policy said.

 

Meanwhile, commenting on Kerala, another state, whose marketing framework or the lack of it had come under scrutiny during the farm law debate, the draft said that the state never had any APMC Act.

 

Instead, it has six community markets designed under Kerala Agricultural Market Project (KAMP), with financial assistance from the European Union called EEC markets. It said these markets have got all the basic infrastructural facilities like boundary wall, pakka internal roads, weigh -bridge, cold storage, ripening chamber, godown, auction hall/platforms, garbage disposal system and other administrative facilities.

 

Also, there are around 920 Grameen Haats in Kerala under the control of Panchayats or Municipality and Corporations. But, the marketing and allied infrastructure in these is very poor.

 

Moreover, there is marketing infrastructure in the state that includes Vegetable and Fruit Promotion Council Keralam (VFPCK) which is a company with stake-holding of farmers (50 per cent), Kerala government (30 per cent) and other related institutions (20 per cent).

 

Also, there is Horticorp for horticulture crops; Supplyco for paddy; Kerala Karshaka Sahakarana Federation (Kerafed) for coconut farmers and Kerala State Rubber Marketing Federation (Rubber Mark), the apex body of primary rubber marketing co-operatives.

 

“Apart from these, central government organisations include the Spices Board, Tea Board, Coffee Board and Coconut Development Board. These are facilitating marketing of respective agricultural commodities in the state,” the draft said.