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LATEST NEWS UPDATES | APMCs losing trade share post reforms; crop arrivals fall as traders, farmers kick middlemen out -Nanda Kasabe and Deepa Jainani

APMCs losing trade share post reforms; crop arrivals fall as traders, farmers kick middlemen out -Nanda Kasabe and Deepa Jainani

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published Published on Sep 7, 2020   modified Modified on Sep 8, 2020

-Financial Express

Signs of a weakening of the Agriculture Produce Marketing Committee (APMC) networks are now evident across major farm production centres in the country, heralding an era of unfettered market access and bolstered bargaining strength for farmers.

On June 5, the Centre promulgated three Ordinances reforming the country’s agriculture marketing, and their impact on the trade has been rather sudden and material: During the June 6-August 31 period, mandi arrivals of crops –- from fruits and vegetables to cereals and pulses – have dropped dramatically. The fall was up to 49% for fruits, 57% for vegetables and 45% for grains.

Of course, part of the decline can be attributed to the lockdown restrictions prevailing in large parts of the country and the crop damage or rotting of stored produce as in the case of onion, but the ceding of trade share by the once-all-powerful mandis indeed has much to do with the reforms. In many centres, particularly in states like Maharashtra and Uttar Pradesh, the farmer community, organised as farmer producer organisations/companies (FPOs/FPCs), and the small traders/aggregators are giving the APMC markets a miss. In Maharashtra, some FPOs, which FE spoke to, narrated how a definite shifting is taking place in agriculture marketing. There is also anecdotal evidence of aggregators and food processing firms buying directly from the farmers on a scale seen never before.

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Financial Express, 7 September, 2020, https://www.financialexpress.com/economy/reforms-impact-apmc-mandis-seem-to-be-losing-trade-share/2076555/


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