07th June 2020.

Subject: Revisit the utility of APMC act in the changed circumstances.

Respected sir,

CAMIT – Chamber of Associations of Maharashtra Industries and Trade – represent trade and industries across Maharashtra. It is our endeavour to play a strong and proactive role in order to achieve the targets set by the government by taking all stakeholders along the path of growth and development.

As you know the APMC act is operational in 295 APMC markets across Maharashtra. The said Act though was conceptualized in 1938 but was enacted first in 60’s in most states of India. There was shortages of almost all the commodities in our country that time and hence it was felt, and rightly so, that the farmers were not getting remunerative price for their produce. Needless to say, it was true to some extent as the farmers did not have adequate storage facilities, and therefore the commodities in the beginning of season were sold at a lower price and the prices would increase, as the stocks depleted by the end of season. However thanks to the Green Revolution and the keen interest taken by the respective governments from time to time our country has become surplus in most of the commodities.

Sir, APMC act was introduced and market yards were created during the periods of shortages to protect the interest of farmers. It served its purpose and the farmers were able to realise fair price for their products through auction organized by APM committees, even though market fee @ 1% was levied on the sale price of the commodities.

However in the present circumstances, when our country is Surplus in almost every commodity, we strongly feel that the APMC act has now outlived its utility in the present form, and the 1% market fee now being charged is actually a direct loss to the farmers in view of the surplus supplies of stocks, as ultimately the rates are determined by the market forces of demand and supply.

While on this, we would also like to bring to your kind attention that over a period of time the Government of Maharashtra, with a view to partly give relief to the consumers, has removed a number of products from the purview of APMC and as such they are exempted from 1% market free, however unfortunately the market committees across Maharashtra have levied service charge of around 1% on such commodities, thus nullifying the said relief. Moreover Government of India by a recent cabinet decision has issued an ordinance ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’. Thereby permitting the farmers to sell their products directly to anyone even without a valid APMC licence, making APMC markets redundant, and as such we strongly feel there is an urgent need to revisit the the utility of the APMC act in the changed circumstances.