Maharashtra’s Agriculture Produce Market Committees (APMCs) are fighting for their survival after the Center released an order in June enabling farmers to sell agricultural products to consumers beyond the limits of the APMC Act. Buoyed by central rule, traders object to the mandi impost and say trade within the mandi’s boundaries is no longer viable to them.
Under the new legislation, there is no price tax on products sold outside the mandis. The Maharashtra Government, however, has not adequately amended the APMC Act of the State, with the result that traders operating within the market yards are regulated by the APMC Act and are subject to a market fee of 0.5 to 1 percent. Market authorities, on the other hand, say the charge will not be waived. On August 21 and August 25, both Sections called for separate bandhs.
On August 25, the Chamber of Maharashtra Industry and Trade Associations and Maharashtra Association Federations called for a bandh of APMCs in the state to seek abolition of the Mandi tax. The Maharashtra Rajya Bazaar Samiti Sahakari Samiti Sangh, on the other hand, has reported that Maharashtra’s 306-odd market committees are in debt and the market levy is necessary not only to provide farmers and traders with infrastructure facilities but has also called for the APMCs to remain closed on 21 August.
Dilip Mohite Patil, president of Maharashtra Rajya Bazaar Samiti Sahakari Sangh, a federation of three hundred and six (306) APMCs in the state, said that around 100-125 market committees in the Vidarbha and Marathwada regions registered almost no business and were on the verge of closure after the central decree was declared. APMC has to build its source of funds and have taken out bank loans to provide farmers and traders with infrastructure. He also pointed out that, currently that merchants tend to trade outside the Mandis, the business committees lose revenue and find it difficult to hold expenses. The Sangh will file a writ in the Bombay High Court requesting a rollback of the Ordinance.
Sudhir Kothari, Chairman, Hinganghat APMC in the Wardha area said, Punjab and Chhattisgarh are challenging the Ordinance at different levels. Now the federation of market committees in Maharashtra is also planning to challenge the Ordinance and will go on a strike on August 21 to protest against the Ordinance. Kothari is also part of the Maharashtra government’s high-level committee to study the Ordinance, pointing out that there has been only one meeting so far that nothing much has happened.
APMC officials said the government has already tried to encourage alternative market structures through direct marketing licenses which, in addition to 63 private markets, have already issued about 200 licenses.
