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The State government brought in a new amendment to the Maharashtra Agricultural Produce Marketing Act of 1963, to provide additional avenues to the farmers for selling produce without any hindrances from the local markets.
Under the previous act of 1963, all the agriculture products had to be sold through a market yard, which controlled by the local Agriculture Produce Market Committee (APMC). But as the economic liberalisation started post-1990s, Maharashtra APMC was seen as a major hurdle for farm liberalisation. In the last 15 years, the act has undergone major amendments.
Latest amendments
The latest amendment further unshackles the sale of farm products by the farmers, it brings in new concepts such as Market Yard of National Importance and defines APMC infrastructure such as Warehouse, Silos and Cold Storage facilities.
Maharashtra’s Minister for Cooperation, Subash Deshmukh, in a telephonic interaction with BusinessLine said the Ordinance is an attempt to bring in competition in the Agriculture produce market, which will ensure that the farmers will get better rates. It will provide an alternative to the farmers from the confines of the APMC markets, where they will be able to sell all their goods through mutual agreement with sellers. But to prevent any kind of exploitation in such transactions, the Maharashtra State Agriculture Marketing Board will have supervisory powers, he said.
Citing the example of the exponential growth of the sugar industry in Maharashtra, Deshmukh said when the sugar industry was under control, there were fewer sugar factories and sugarcane sale was confined to certain geographical area. There have even been occasions in past where framers have burnt excess sugarcane due to lack of buyers.
“Today, the situation is very different due to sugar decontrol order and the proliferation of sugar factories across Maharashtra. The farmers can sell their sugarcane to the sugar factory of their choice. Due to the competition, the farmers get bonus plus fair and reasonable price (FRP) for their sugarcane. A similar attempt is being made for other farm products,” he said.
He added that the Ordinance will disrupt the market affecting the interests of the middlemen but it will benefit the farmers.
A senior Maharashtra government official said that when the farm products enter the APMC market, the price increases by a minimum of 14 per cent due to the commission of agents and handling charges of the APMC. But this additional money never reaches the farmers. It gets divided among the market intermediaries.
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