Hailing the Centre’s move to allow FDI in multi-brand retail, farmers in Punjab now seek speedy reform in the Agriculture Produce Marketing Committee Act (APMC) by the state government to ensure improvement in quality of produce and better returns to them.
However, commission agents who are the oldest intermediaries in commodity supply chain have condemned FDI in multi-brand retail and asked for strengthening of “own” infrastructure to prevent any wastage of fruits and vegetables.
“Farmers will get advantage of the FDI into multi-brand retail as they will get better price for their produce from retailers provided the Punjab government amends APMC Act whereby allowing direct procurement from farmers and setting up of private market yards,” said Mr Sukhjit Singh Bhatti, a potato grower from Jalandhar.
Farmers say that they would get better price for their produce if direct purchase from field is allowed and companies could set up private market yard without any permission.
The crucial amendment in the APMC Act has been hanging fire for the last six years as SAD-BJP led Punjab government has not bothered to take steps in this regard clearly under the alleged pressure of commission agents, who think that they would be routed out once amendments are in place.
Commission agents charge 5 per cent as commission on sale of fruits and vegetables in Punjab.
Currently, Punjab does not allow direct purchase of produce from fields while setting up of private market yards is allowed only with the prior permission of state authorities.
The matter assumes significance as the Shiromani Akali Dal party, which is ruling with its ally BJP in Punjab, has supported FDI in multi-brand retail, saying that it would improve quality and quantity of farm yield and better remuneration.