Following the ordinance promulgated by the Indian government that allows barrier-free inter-state trade in agricultural produce, Agriculture Produce Market Committees (APMCs) in the state of Maharashtra might witness a 30-40% loss in their income from cess.
According to a news report by the Financial Express, APMCs may face loss in the range of Rs 120-Rs 150 crores in income, as disclosed by the senior officials.
It is to be noted here that the Indian state of Maharashtra has more than 300 APMC mandis with an annual turnover of roughly Rs 50,000 crore.
APMC income from the cess ranges from 0.5% to 1% of the commodities’ trade value, nearly Rs 350 crore on an average, according to officials.
As food grains, pulses are non-perishable, there might be a notable difference in revenues thanks to more time to bargain and sell the produce.
Balasaheb Patil, minister for cooperation and marketing, said that the state government will have to study the ‘One Nation One Market’ concept in detail and see how it needs to be implemented so that it can co-exist with APMCs.
At a review meeting in Pune, he said that APMCs came into existence to prevent farmers from getting duped by traders and the state government will have to study all aspects to see how it can be implemented. Fruits and vegetables were delisted four years ago and they would study how much of a difference it has made to farmers, he said.
Sunil Pawar, MD, MSAMB (Maharashtra State Agriculture Marketing Board) said that they would have to wait and watch to see how the markets develop after the ordinance is implemented. Meanwhile, the government has now decided to relax the direct marketing licences for fruits and vegetables for a period of six months. This means traders can directly purchase fruits and vegetables from the farmer without any licences, Pawar said.