Gujarat Brings in Ordinance to Check APMCs, Opens Doors to Private Players

· Cess only for Transactions in their Own Yards, Private Sector too can Set Up Yards

Putting an end to the “monopoly” of state-run APMCs in Gujarat, the state government has cleared the Gujarat Agricultural Produce Markets (Amendment) Ordinance 2020, which allows private entities to set up their own market committees or sub-market yards that can compete and offer the best possible remuneration to farmers

So far, farmers of a particular taluka had to compulsorily sell their produce to their respective APMCs. Even traders were restricted to their own talukas.

The APMCs levied a cess on any transaction that happened within the marketing yard of the APMC or outside it.

"Earlier, an APMC had jurisdiction over an entire taluka, and in some cases more than one taluka. Now APMCs can levy cess only on those transactions that happen within the boundary walls of their marketing yard," said Manish Bhardwaj, secretary, Animal Husbandry, Fisheries and Cooperation

Putting an end to the “monopoly” of state-run APMCs in Gujarat, the state government has cleared the Gujarat Agricultural Produce Markets (Amendment) Ordinance 2020, which allows private entities to set up their own market committees or sub-market yards that can compete and offer the best possible remuneration to farmers for their produce.

The ordinance also restricts the jurisdiction of these market committees to the physical boundaries of their respective marketing yards.

So far, farmers of a particular taluka had to compulsorily sell their produce to their respective APMCs. Even traders were restricted to their own talukas. The APMCs levied a cess on any transaction that happened within the marketing yard of the APMC or outside it.

Last fiscal, the state’s 24 APMCs together conducted transactions worth Rs 35,000 crore and earned Rs 350 crore as cess (0.5℅) on the transactions. About 40 per cent of the cess earned was on transactions done outside the physical boundaries of the APMCs’ marketing yards.

In a bid to protect the interests of smaller APMCs, the government will collect 20 per cent cess from private players and reroute 14 per cent of it back to the APMCs, he said.

The ordinance also provides traders with one “unified single trading licence” through which they can participate in trading activities anywhere in the state.

“A trader in Unjha will now be able to participate in the auction process in Surat. So now, multiple traders can woo a farmer depending on the quality of their produce,” Bhardwaj said. The amendments also allow setting up of portals for e-markets.

“The director of APMC and the Gujarat State Agriculture marketing board will look into grievance redressal. Till now, the APMC was the sole authority,” said the official.

While APMCs are not too happy, farmers’ bodies have welcomed the state government’s decision. “Though this ordinance will allow more private players to enter, it will end the monopoly of the APMCs who used to form a cartel and decide on what prices to offer to farmers. There are two major takeaways. Firstly, the farmer can sell wherever he wishes and secondly, there will be more buyers than sellers in the market,” said Sagar Rabari of Khedut Ekta Manch.