CII today organized a seminar on the reform of APMC (Agriculture Committee on the market in fruit and vegetables) for the year and their impact in the southern states. This is an initiative of agricultural work of the Sub-Committee, CII-southern region.
On this occasion, Mr. Shankarlal teacher, Chairman of the Board, the International Association of agricultural markets and the agricultural sector is an urgent need for reform by the state governments concerned to help stimulate the economy rate expected to grow higher than before the decision, but a vast program of reforms in this vital sector is still emerging. He said the teacher, the need for agriculture to be a central issue, not a state subject, and thus keep the policy. And contract farming should be encouraged because it will help put technology and modern practices in agriculture - and I saw Professor M..
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 buyers, plus 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 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 discouraging private investment and foreign investment in the food.
He said the International Trade Centre Ltd., agriculture, agriculture and India reached a turning point - and the relationship with the public and M. Sivakumar, Chairman, Farm Business Management Assistant -Committee, CII-Southern Region and CEO. After browsing through the economy of scarcity to an economy with a surplus of grain, and it is important that central and local governments recognize the need for inclusive growth to take agriculture forward in India. Establish the context of today's debate, Mr. Sivakumar said that, despite the use of about 57% of the population, agriculture contributes 27% of gross domestic product in India. This distortion makes agriculture is not a generator of a profitable business, and therefore, according to a global vision, you need to set up opportunities for India in the agricultural export sector. 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," said Prof. S Raghunath from the Indian Institute of Management, Bangalore, and the need for the distribution system for the effective and efficient food and supplies to meet the requirement of 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 face changing agriculture and the agricultural supply chain, and noted Prof. Raghunath. India is the largest producer of vegetables in the world, with a share of a total of 15% of world production . And produces 8% of the world the fruit of India, ranks second on the world market. He informed Professor Raghunath Despite this, there is high cumulative wastage of 40% in India. He said the Poor infrastructure and lack of supply chain organization was the main reason for this disparity. And since Professor Raghunath Thus, reforms in this sector need to catch up with the pace of development in the economy and the abolition of intermediate and stakeholder participation in the organized sector and the elimination of gaps.
PCHR calls upon States to amend APMC Act
In a move intended to provide an opportunity for farmers to sell their products directly to market agriculture industry, and the establishment of competitive markets in private and cooperative sector, the Centre has asked the state government to amend the Code marketing of agricultural products.
Under this law, can not for the processing industry does not buy directly from farmers. Farms is also limited to contract directly with the manufacturer because the product should be directed through regulated markets. These restrictions are acting as a barrier to trade, and farmers and industry.
The government recently approved a plan of the central sector, under the title "Development / strengthening of infrastructure and marketing of agricultural products, classification and unification."
Under the program, you must provide credit support for investments related to the capital cost of public infrastructure, or a specific product for the marketing of agricultural products, and strengthening and modernization of markets, and wholesale trade in agricultural products, rural periodic or in tribal areas.
Associated with this plan for the reform of the state law on agricultural markets (APMC Act). Will be provided with assistance under the new system in the data that the APMC Act should be amended.
Requested the Centre to inform the state on this if it was made necessary amendments to the APMC Act to inform the States to implement reform.
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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