Karnataka cuts APMC market fee to 0.35 per cent

The Karnataka government has further reduced the market fee charged by APMCs to 0.35 per cent from one per cent, a move that’s expected to provide traders in the APMC market yards a level playing field with private markets and other entities. This is the second such revision in market fee this month.

Agricultural Produce Market Committee (APMC) traders have been demanding removal of the 1.5 per cent market cess after the Centre introduced agri-marketing reforms through an ordinance recently, giving farmers a choice to sell their produce at the farm gate. As a result, Karnataka government reduced the market cess to 1 per cent in early July.

However, not content with the State’s move, the APMCs had threatened to go on strike from Monday demanding removal of the market fee. Buckling under the pressure, the State decided to further reduce the market fee/user fee to 0.35 per cent of the transaction value. The fee would be used for providing maintenance services in the market yard, such as security and cleaning, among others, sources said.

Welcoming the government’s latest move, a large section of traders have decided to withdraw the proposed strike, but some APMCs, mainly in Central and North Karnataka, have started the strike. “The strike has begun today and about 25-30 APMCs are participating in it,” said Shankaranna Munavalli, President of the APMC Action Committee in Hubballi.

In a statement welcoming the government’s decision, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), the apex trade body in the State, said the reduction in market cess not only helps farmers, but also APMC merchants in the state to sell their products competitively. It also safeguards the interests of several families who are depending on these market yards for their livelihood.