Finance minister Nirmala Sitharaman’s announcement regarding the enactment of a Central law to provide adequate choices to farmers to sell produce at attractive prices and allow barrier-free inter-state trade will go a long way in ensuring the cultivator gets a better remuneration for his crop.
As of now, states are controlling the law governing APMCs and its political reach.
“Amendments to the Essential Commodities Act, reforms in agricultural marketing and risk mitigation through predictable prices will empower farmers, strengthen agri-food processing linkages and enable demand-driven value added agriculture. The reforms will encourage investments in food processing and together with the infrastructure outlays will contribute in shaping a competitive agri value chain, reduce wastages and raise farmer incomes,” said Sanjiv Puri, Chairman, ITC Limited.
Relieving farmers from compulsion to sell their produce using Agriculture Produce Marketing Committees (APMCs) will prove a major relief under scenarios of both, scarcity and abundance. Bringing the produce to mandi and selling to the middleman at the price asked for not only reduces the cultivator’s chance of getting a fair price, but also adds to his cost.
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