Three states permit free commerce of agricultural produce exterior mandis with none responsibility

Rajasthan, Gujarat and Karnataka at the moment are amongst a handful of states that permit free commerce exterior mandis with none responsibility, thus starting a reform in agricultural commerce.

In many of the bigger states, the agricultural commerce is managed by Uttar Pradesh and Madhya Pradesh with the issuance of licenses and levying mandi charges for direct purchases from farmers. Direct buy from farmers just isn’t allowed in any respect within the Union Territory of Chandigarh.

When the Middle introduced within the controversial agricultural legal guidelines, one of many primary arguments was to permit farmers “freedom to promote anyplace” and it was additionally claimed that opposition to the reforms got here from Punjab, Haryana and western Uttar Pradesh. Nonetheless, an in depth research of present agricultural commerce reveals that some states have taken cues from the now-abandoned agricultural legal guidelines and launched reforms within the commerce of agricultural produce. Nonetheless, in many of the states, it has caught to the audacity to just accept the reforms.

“It’s good that states proceed to take choices on this subject and usually are not divided on political strains. However, any enchancment in agricultural advertising on the pan-India degree will rely upon the outcomes of the continuing meeting elections in 5 states. Nonetheless, what’s extra vital is to enact a central legislation on inter-state motion of ‘meals articles’ which is beneath the concurrent listing and can facilitate commerce,” mentioned former Union Agriculture Secretary Siraj Hussain.

market payment

Mandis cost totally different payment, cess or consumer payment throughout states and it’s the identical in all places besides in Gujarat and Maharashtra, the place the native Agricultural Produce Market Committee (APMC) is empowered to repair charges, which fluctuate from crop to crop by 0.5 per cent. varies between 6 per cent. For non-regulated gadgets, largely vegatables and fruits, merchants and corporations are allowed to purchase exterior the mandis with none costs. However many of the states cost 1 per cent consumer payment collected from the customer when vegatables and fruits are offered contained in the mandis.

“This (mandi payment) is a income mannequin for all states which they’d by no means need to surrender, though they know it’s including to the full price of meals gadgets. Furthermore, the situation of the mandis can also be such that the merchants who store within the mandis are additionally promoting items there, primarily vegatables and fruits, because the retailers come there. That is the rationale why many states cost consumer payment for de-regulated items as mandi payment can’t be collected from these gadgets,” mentioned Anil Dwivedi, a dealer at Delhi’s Azadpur mandi.

Chandigarh obtained 86,082.10 tonnes of the commodity in its two mandis throughout April-February of the present monetary yr, which is increased than your complete 2020-21. As a result of pandemic, arrivals declined by practically 40 per cent from 2020 ranges final yr to 75,752 tonnes. The native administration levies 2 per cent mandi tax.

Punjab, alternatively, costs 6 per cent mandi tax (together with growth cess) on wheat and paddy (non-basmati), whereas it ranges between 1-3 per cent for basmati, maize, cotton, vegatables and fruits. Haryana costs 4 per cent on wheat, paddy, tur, sesame and inexperienced fodder and 1-3 per cent on different gadgets. Uttar Pradesh levies 1-1.5 % mandi payment/consumer payment (together with cess) on all items.

Hussain mentioned that whereas direct procurement from farmers ought to proceed, states must also accumulate knowledge on what number of commodities are traded at what worth to formulate their insurance policies as the principle goal is to assist farmers understand higher worth for his or her crops. To assist get it performed.

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March 08, 2022

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