Recently the Punjab Chief Minister Captain Amarinder Singh held a video conference with farmers’ Unions to get their views on the recently passed Ordinances by the central government including Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, the farmers (empowerment and protection) Agreement on price assurance, and amendment of Essential Commodities (ECA) ACT. As for as Farmers’ Produce Trade and Commerce Ordinance, is concerned, it will end the state's APMC Acts. Punjab government and farmers unions are opposing these it on the pretext that it will not only privatised the entire sale/purchase system but also end the MSP regime of various crops in the state. Opposition SAD takes a dig at Punjab government by stating that Congress government in the state has already Amended APMC act in 2017 in which it has already allowed setting up of the private mandis by private players and when it has already privatised sale’ purchase of the farmers’ produce then why now making noise on the Union government ordinance, which also allowed trade outside notified mandis of the state governments. Is the APMC Act (Amended 2017) by state government similar to the centre's ordinance-farmers produce trade and Commerce?
The basic difference in state’s APMC Act, 1961 (Amended 2017) and centre’s Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance
As per state Act, only licence holder from the government after meeting the provisions laid under the Act can do trade, in centre’s ordinance, no licenses from the state government are required and any PAN cardholder can do trade.
Where the trade can be done?
As per the state's amended ACT, the trade will be allowed in both the mandis- State-owned mandis under Punjab Mandi Board (PMB) and the private Mandis allowed under the amended Act. In Private mandis, the trade is allowed in the notified yards by the government and the farmers can sell their product in private or PB mandis as per their wish and the PMB will charge fee/cess as it is being charged now which is used for the development of the mandis and the rural areas. Under the ordinance, neither sate owned nor the private mandis are needed and trade can be done at any place which includes at farmers’ doorstep, traders’ own premises or at Farmer's fields anywhere beyond the notified market yard. Also, farmers can sell their product anywhere in the country.
The types of private Market Committees can be set up under the amended Act
Apart from 1852 big and small Mandis under PMB across the state, for competitions, there is a provision of setting up of private market yards demarcated by the government under the Amended Act. These mandis would be of three types, owned by the private players and can be set up in 10 acres, 3-acre and one-acre areas where only trade of fruits, vegetables, flowers, wood and livestock is permitted. And the government will have full control over it. The owners of these private yards and their relatives cannot engage in trading activities and they can work as operators of these mandis. Taxes and other duties decided by the government will be levied on the sale and purchase of farmers’ produce. Centre’ ordinance has no such provision, trade can take place anywhere without charging any fee as the state government will not have any no control on such trade.
In 3- acre and one-acre mandis mainly ‘Kisan mandis’ and ‘Special Mandis’ are to be set up where farmers can sell their produce directly to the consumers and where the purchase, stock, cold chain yards can be set up, respectively. For instance in Abohar, Kinnow mandi, in Ludhiana Fishmarket and in Balachaur (Nawanshahr) ‘green peas’ market has been set up under the PMB.
But there is no provision of setting up any such mandi as per the ordinance and traders can purchase any products including wheat, paddy, maize and cotton from the farmers.
The status of E-trading
Only licence holder dealer can do e-trading but as per the ordinance, any pan cardholder can do it as no fee would be charged.
The big companies which can enter the trade of sale/purchase of the crops, food processing
The state government has introduced a Unified Licence system so that big companies in the food processing system like ITC etc. can take steps in the interest of farmers. But in case of the ordinance, there is no need for a licence for big companies. "We are totally against the ordinance which will allow big companies to enter into the Agriculture purchase and loot the farmers as per their wish without any control on them," said BKU (Dakunda) General Secretary Jagmohan Singh.
How many private yards were opened in Punjab under the provision of APMC Amended ACT 2017?
According to the GPS Randhawa, General Manager PMB, not a single private mandi could be opened under it till date because agricultural ventures are not much profitable these days. He said that revenue model, which will include cess/ taxes and share of the private players and government from the earning of such taxes in private mandis, would be decided at the time of opening of such mandis in the state as it would be fixed in a way that the social obligation such as rural road infrastructure of the area around these mandis can be considered.
What happened to the MSP regime after the Amended Act?
“After amended three years back, the MSP regime is continued in the state as it was before amendment as major agricultural products like wheat and paddy are brought only in the PMB owned markets where state and centre’s procurement agencies purchased it from the farmers on fixed MSP. The ordinance’s provisions may end the MSP regime soon," said and added Randhawa.