APMC traders seek cut in market fee; may launch stir

The APMC traders in Karnataka are gearing up to launch an indefinite trade bandh if the government fails to meet their demand for a reduction in market fee to 0.20% from the present 1% levied at APMC markets across the state.

Following an amendment to the APMC Act recently through an ordinance, the state Cabinet on July 9 decided to reduce the market fee to 1% from the earlier 1.5%. Already, around 5,000 traders in north Karnataka districts such as Bidar, Kalaburagi, Raichur, Vijayapura and Yadgir have shut down their trade in demand for the reduction in the market fee.

Following a suggestion from the centre, the state government promulgated an ordinance amending the Agricultural Produce Marketing Committee Act to remove restrictions on the sale of farm produce. This was done by the government to help farmers hit by the Covid-19 lockdown. The legislation enables farmers to sell their products anywhere in the state and they need not depend on APMC yards in the state.

The amendment was aimed at freeing farmers from the intermediaries and curb their exploitation. With this amendment, the large private traders and e-commerce companies can go up to the doorstep of the farmer and purchase agricultural produce directly without going through the APMC markets. Under the provisions of the amendment, buyers of agriculture produce need not pay any market fee outside the physical boundaries of APMC markets.

“There will be no choice left for us if the government does not respond to our demands. We will go on a protest by not operating within APMC premises for an indefinite period. A decision will be taken on July 23 in this regard,” Ramesh Chandra Lahoti, Chairman of APMC Committee, FKCCI told DH.

FKCCI, in a memorandum to the government, has sought a reduction in the market fee.

The reduction in market fee will, however, cause loss of revenue to the state government. Till last fiscal year, the state government earned close to Rs 1,000 crore from market cess levied in the APMCs. With the reduction in the cess to 1%, the government’s revenue will drop below Rs 600 crore per annum. If it is reduced to 0.20%, the revenue will further drop to around Rs 250 crore. “We have told the government that there is a need to create a level playing field. It would be sufficient for the government to maintain its market yards even at 0.20% fee,” Lahoti said.