Close to a hundred APMC markets in parts of Central and Northern Karnataka are on strike from Monday seeking abolition of market fee and level playing field with private markets on compliance issues.

After the Centre introduced the marketing reforms recently through an ordinance, giving farmers a choice to sell outside the purview of APMCs, traders operating from the regulated market yards in Karnataka have been demanding abolition of market fee. The State has brought down the APMC market fee to 0.35 per cent of the transaction value from 1.5 per cent earlier.

“We want a level playing field with traders operating outside the purview of the APMCs in the trade area,” said Mahendra H Laddad, President, Karnataka Chamber of Commerce and Industry in Hubballi. Laddad said about 100 APMC market yards in North and Central Karnataka have joined the strike, which may go on till the demands are met. While trading in agro-commodities has stopped in these primary markets, perishables such as fruits and vegetables have been exempted, he said.

Of the 160 APMC marketyards, only 65 reported the prices on Monday based on the trading activities, according to Department of Agricultural Marketing. The State, which used to collect market fee of around ₹650 crore from the APMC transactions annually, is staring at a huge revenue loss after the market fee reduction.

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