CII today organized a seminar on the reform of APMC (Agricultural Committee in the market for vegetables and fruits) for the year and their impact in the southern states. This is an initiative of the agricultural work of the Subcommittee, CII-southern region.
On this occasion, Mr. Shankarlal teacher, Chairman of the Board, the International Association of Agricultural Marketing and the agricultural sector is an urgent need for reform by the state governments concerned to help stimulate the economy rate is expected to grow higher than before the policy makers, but a comprehensive program of reforms in this vital sector is even now emerging. He said the teacher, the need for agriculture to be a central issue, not a state subject, and thus keep politics. And contract farming should be encouraged because it will help to bring technology and modern practices in the agricultural sector - and saw Mr. Teacher.
APMC Act in each state of India requires all agricultural products to be sold only in government - regulated markets. These markets impose higher taxes on the buyers, in addition to fees and commissions charged by intermediaries, but in general, and the provision of services in some areas, such as price discovery, or inspection grades. Have a major impact of this regulation is the inability of the private sector processors and retailers to integrate their work directly with farmers or other sellers, eliminating middlemen in the process. Farmers are also unable to enter into legal contracts with buyers. This leaves no incentive for farmers to raise the level and discourage private investment and foreign investment in the food.
He said the International Trade Centre Ltd., agricultural, agricultural and India reached a turning point - as well as dealing with the public and Mr. Sivakumar, Chairman, Agricultural Business Management Sub-Committee, CII-southern region and CEO. Having sailed through the economy of scarcity to an economy with a surplus of grain, and it is important that the central and state governments recognize the need for inclusive growth to take agriculture forward in India. Setting the context for today's discussion, Mr. Sivakumar said that despite the employment of about 57% of the population, agriculture contributes 27% to the gross domestic product in India. This distortion makes agriculture is not a generator of a profitable business, and therefore, according to a comprehensive vision, you need to set up India's opportunities in the sector of agricultural exports. Contract farming and direct marketing to retail chains and processing units are the need of the hour he said. Regulations to keep up with these requirements are necessary, who need alternative marketing mechanisms. He therefore, recommended reforms of the APMC Act in various fields.
Make a presentation on "State policies align with the new models for a new market," stressed Prof. S Raghunath from the Indian Institute of Management, Bangalore, and the need for distribution system efficiently and effectively for food and supplies to meet the demand for transparency. Since the main objective of the APMC Act is to prevent exploitation of farmers by various intermediaries, there is a need for reforms in the law, and the changing face of agriculture and agricultural supply chain, and he noted Prof. Raghunath. India is the largest producer of vegetables in the world, with a share of a total of 15% of global production. And produces 8% of the world the fruit in India, occupies second place in the global market. He informed Professor Raghunath Despite this, there are high cumulative wastage of 40% in India. He said that poor infrastructure and lack of supply chain organization was the main reason for this disparity. And saw Professor Raghunath Thus, the reforms in this sector need to catch up with the pace of development in the economy and the abolition of intermediaries and the participation of stakeholders in the organized sector and the elimination of gaps.
PCHR Calls for States to amend APMC Act
In a move designed to provide an opportunity for farmers to sell their products directly to the agriculture industry contract, and the establishment of competitive markets in private and cooperative sector, the Centre has asked the state government to amend the Code of Marketing of agricultural products.
Under this law, can not for the processing industry do not buy directly from farmers. Farms also is limited to contract directly with the manufacturer because the product must be directed through regulated markets. These restrictions are acting as a disincentive to trade, and farmers and industry.
The government recently approved a plan of the central sector under the title "the development / strengthening of infrastructure and marketing of agricultural products, classification and unification."
Under the program, you must provide credit support for investment linked to the capital cost of public infrastructure, or a specific product for the marketing of agricultural products, and to the strengthening and modernization of markets, and wholesale trade of agricultural, rural periodic or in tribal areas.
Associated with this plan for the reform of state law on agricultural markets (APMC Act). Will be provided with assistance under the new system in the data that the act should be amended APMC.
Asked the Centre to inform the state about what if it was made necessary amendments to the APMC Act to inform the States to implement the reform of the system.
With the Centre, the industry is also interested in the amendment to the APMC Act because it limits the growth of agricultural trade.
"The political system in the internal terms of trade is very restrictive. Agriculture is still incapacitated by a large group of controls, which were introduced in the era of shortages," said PHDCCI.
The government said at the same time, a decentralized system of wheat and rice and get the public distribution system more efficient, and.
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