JOIN USKarnataka to allow private markets for farmers to sell goods
In a move that can have far-reaching consequences, the Cabinet on Thursday approved an ordinance that removes restrictions on the sale of agricultural produce, thereby allowing private individuals to set up trade markets where farmers can sell.
The ordinance was approved even as some reservations were expressed inside the Cabinet, while outside, the Opposition Congress and JD(S) are up in arms claiming that the move will adversely impact farmers.
The ordinance seeks to amend the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, Law Minister J C Madhuswamy explained while briefing reporters after the Cabinet meeting.
"There was a time when APMCs (agricultural produce market committees) were the only markets where wholesalers and big businesses would go to. Now, we have decided to allow individuals to set up private markets and purchase. The objective is to give farmers the freedom to sell their materials directly by avoiding middlemen," he said.
The powers of local APMCs will be restricted to the existing APMC yards (mandis), allowing farmers to sell their produce in the markets of their choice. "This is a step towards doubling farmers' income after 2020 as Prime Minister Narendra Modi has envisaged," Madhuswamy said, adding that the move was "truly in the interest of farmers".
Curtailing the power to notify markets also has a political ramification in that it diminishes the significance of APMCs whose elections involve political parties. Like in other local elections, parties back candidates in APMC polls and claim bragging rights after victory.
Madhuswamy clarified that the Karnataka State Agricultural Marketing Board will continue to have the power to regulate the goings-on in the trade of agricultural commodities. "The ordinance ensures enough protection to farmers," he said. "For instance, we have made the use of electronic weighing scales mandatory. Also, those who want to set up private markets must be a licensee of the state board and show a bank guarantee," he said.
The BJP-ruled Madhya Pradesh and Gujarat have implemented a similar amendment. According to Madhuswamy, the ordinance was approved in line with the recommendations made by the Centre based on a model Act that was circulated to the states.
According to sources, some ministers felt that the ordinance will be used as a tool to attack the government. "We could have convinced people about this first. What was the hurry," some asked. But Chief Minister B S Yediyurappa and a few others were keen.