Centre to enact law to allow farmers sell at markets of choice

Ushering in far-reaching agri-marketing reforms, Finance Minister Nirmala Sitharaman on Friday said the Centre has decided to enact a law that would free the farmers of the obligation to sell their produce only to licensees in Agricultural Produce Marketing Committees (APMC).

Sitharaman said the central law would allow farmers to sell their produce to sellers of their choice and across the borders of the state, a reform measure welcomed by experts as long overdue.

Also Read: Atma Nirbhar Bharat: Key takeaways from Finance Minister Nirmala Sitharaman's Presser

Announcing the administrative reform initiatives for the agriculture sector as part of the third instalment of the economic package on Friday, the Finance Minister said that a central law will help farmers in better price realisation for their produce.

Under the provisions of the APMC Act, farmers are required to sell their produce only in designated mandis at prices that are often regulated and many times lower than prevailing market price.

Sitharaman argued that such restrictions did not exist for any industrial production and proved to be a hindrance in free flow of agricultural produce.

Amendments to the APMC Act have been on the agenda of governments of all hues and mooted by the Centre on different occasions, but the states were reluctant to bite the bullet.

Sitharaman said that as being in the concurrent list, the Central law will be formulated to provide adequate choices to farmers to sell produce at attractive prices. The law will also provide for barrier-free inter-state trade for farmers and facilitate a framework for e-trading of agriculture produce.

“Kudos to Modi government for biting the bullet for promising to change ECA, APMC, and Contract farming. Bold move in the right direction that will create efficient value chains and benefit both the farmers & consumers,” Ashok Gulati, Infosys Chair Professor – Agriculture, ICRIER, said.