APMC & Rural Economy

Friends, have you ever wondered about  fruits, vegetables, food grains and pulses which are produced in farms by the farmers reach retail market near you.

In every state there is an Agricultural Produce Market Committee (APMC), which basically operates on two principles : first to ensure that farmers are not exploited by intermediaries (or money lenders) who compel farmers to sell their produce at the farm gate for an extremely low price. Secondly to ensure all food produce first be brought to a market yard and then sold through auction.

Features of APMC-

Each state which operates APMC markets geographically divide the state. Markets (mandis) are established at different places within state. Farmers are required to sell their produce via action at the mandi in their region. Traders require a license to operate within mandi. Wholesale & retail traders (eg shopping Mall owners) and food processing units can not buy directly from farmer.

Some of the salient features of APMC Model Act 2003 are as follows

Facilitates contact farming model, Special market for perishables, Farmers, private persons can set up own market, licensing norms relaxed, Single market fee  & APMC revenue to be used for improving market infrastructure.

However not all states have passed the bill. Some states have passed but neither framed rules nor notified it. Thus, inter state barriers continue. Further, Union Budget 2015 proposed to create United National Agricultural Market with the help of state govt and NITI Ayog.

Now I, will talk about, The Maharashtra State Agricultural Marketing Board runs about 300 APMCs in the state, under the APMC Act enacted by govt of India. In July 2016, the Maharashtra State Govt removed fruits & vegetables from the purview of the APMCs. At present only 219 APMCs are operating.

In the state of Maharashtra almost all the APMCs have been controlled by politicians, and the  NCP controls major chunk of them, followed by Congress. That is the reason, you know, Sharad Pawar was Food & agricultural minister in UPA I & II from 2004 -14. But with change in powe at centre and state and with new law governing APMCs, Sharad Pawar and his NCP has lost their clout over APMCs and  that is the reason he is so frustrated now.

The fact is that he first lost control of APMCs  over farmer produce and after that Cooperative sector has been taken away from NCP & Congress. Those who are  from Maharashtra are aware of this reality, that in large part of the state, District Co Op Banks are controlling the rural economy, and these banks were controlled by Congress & NCP.

There are 31 Dist. Co op banks, and 300 APMCs in Maharashtra. Imagine almost 100% of them were controlled by NCP or Congress. Banks control credit & money and APMCs control demand & supply of agricultural produce.

Anyone who controls both, becomes the King of the rural economy of that region. The entire socio economic centre in rural Maharashtra is centred around DCCBc, Co Op Sugar Mills, APMCs and Credit Societies..

Now what BJP govt of Maharashtra did—-

-first move: instead of trying to remove control over APMCs, govt removed control of APMC itself.

-second killing move -Co Op Banks structured is 3 tiered, first there is Urban co Op banks, then there District Co op Banks, and then there is big boss called Maharashtra state Co op Bank, which has a long list of Board of Directors (no prizes for guessing who entered  these institutions- politicians). It has 21 members; 12 from DCCBs and 2 from UCCBs and others being nominee of state govt. As DCCBs were controlled by NCP/congress, so  in fact they were ruling the both APMCs and Sugar Co ops with this. Then the state govt changed the law ate restructured the  board- now it has 6 members from DCCBs, 6 from UCCBs and rest from state govt.

This move led to dilution of power structure. Now congress & NCP leaders are crying hoarse over this move, but no one is hearing them.

New rules also says farmers will elect Directors who are from the same area of operations of APMC as against current rule under which directors were chosen indirectly by Gram Panchayat’s and Trader’s bodies. Another killing blow : Area of operation restricted to only their market yard or sub yard, thereby removing stranglehold on trade and farmers.

So the system created by Congress/NCP during 6 decades to rule the rural economy finished in one stroke,  and farmers set free from the shackles of corrupt blood sucking politicians.

And final nail in Congress/NCP Coffin: Any APMC which gets 30% arrivals from outside the state will be declared “ Market of National Importance” for which Board will be appointed by State govt directly.

So Congress/NCP lost Big Market which was equivalent to big Cash.

So this harmful economic system has been dismantled, where every layer with access to money was controlled by corrupt politicians or their yes men. Control Gram Panchayat and then take control over APMC and money supply. Control that and you will find people coming to bank. Set up a Co Op Bank and control that as well. Now all these are GONE.

NO POLITICIANS WILL EVER TALK OPENLY THAT THIS SYSTEM WAS THE MAIN CAUSE FOR FARMERS’ SUICIDES.AS THESE POLITICIAN NEVER GAVE THE FARMERS PROPER PRICE FOR THEIR PRODUCE, AND LOAN WAIVER AMOUNTS WHICH WERE SANCTIONED BY GOVT NEVER REACHED FARMERS TIMELY.

So friends what is your opinion on this matter.

Awaiting your comments/ feed backs /views.

 

Anil Malik

Mumbai, India

13^th Mar 2019