Modi must scrap APMC, Essential Services laws without any delay: P Chengal Reddy

“I welcome the announcement by finance minister Nirmala Sitharaman about the government’s intent to bring a central law to set farmers free from the APMC Act,” Dr P Chengal Reddy, Chief Advisor of Consortium of Indian Farmers Associations told ETV Bharat.

New Delhi: Farm experts have demanded immediate implementation of two policy reforms announced by finance minister Nirmala Sitharaman today. Prime Minister Narendra Modi must implement a central law to free Indian farmers from the shackles of the Mandi-system and also remove the essential services act, said Dr P Chengal Reddy.

“I welcome the announcement by finance minister Nirmala Sitharaman about the government’s intent to bring a central law to set farmers free from the APMC Act,” Dr P Chengal Reddy, Chief Advisor of Consortium of Indian Farmers Associations told ETV Bharat.

“Both the decisions to reform the APMC law and Essential Services Act are very good. But my question to the NDA government is will they do it in next three or six months,” said Dr Reddy while highlighting the opposition from certain quarters that will delay the implementation of these two measures.

He said the Union governments have often delayed any reforms in the agriculture sector.

“Dr Swaminathan’s report was given in 2007, the Congress party was in power at the Centre till 2014 but they did not implement a single recommendation,” Dr Reddy noted.

He also blamed Prime Minister Modi’s government for delaying the implementation of Dr Swaminathan’s recommendation of fixing the MSP at 150% of the cost of production after it formed the government in May 2014.

“In its 2014 election manifesto, the BJP promised that it will implement MSP hike but it was delayed for four years and Prime Minister Modi implemented it just ahead of 2019 Lok Sabha polls,” observed Dr. Reddy.

He says Prime Minister Modi was known for taking strong decisions and his government should not delay it any further.

“Here, we have a man who brought demonetisation, he abrogated the special status of Jammu & Kashmir under Article 370. What prevents him from bringing an ordinance to immediately scrap these laws,” he asked.

Dismantling of Mandi System to benefit farmers

Dr Reddy who has been closely associated with the farmer issues says that free flow of farm produce across the country will empower Indian farmers.

“Tomorrow, if the Government of India brings a national law to remove all these restrictions then why would I take my produce to Nagpur market in Maharashtra or Warangal market in Telangana? I can directly take it to Ahmedabad market,” he said while underscoring the farmer’s benefits if the APMC system was dismantled.

“Once these restrictions are removed then a groundnut farmer in Sri Ganganagar district in Rajasthan can directly take his produce to Hyderabad or Kolkata wherever he wants to sell. It is not possible today,” he noted.

He said the APMC reform has been pending for over a decade due to opposition from certain quarters. Some states view any amendment in the APMC law as an encroachment in their legislative sphere.

In her press conference, Nirmala Sitharaman also rejected the view that the Union government was not competent to enact a law to reform the Agricultural Produce Marketing Committees Act.

“Inter-state trade is in concurrent list and the Union government can make laws on the subject,” Nirmala Sithraman told reporters.

Economic Affairs secretary Tarun Bajaj also explained that the constitutional provisions in such matters are very clear.

“It is very clear in the constitution that if there is a state law and there is a Central law on the same subject then the Central law will prevail,” he told reporters.

“If the government brings in an ordinance in a week’s time or so, we will certainly welcome it,” said Dr Chengal Reddy while highlighting the urgency to reform the APMC and Essential Services laws.

BJP ruled states have begun amending APMC law

Following a directive by the Centre, Gujarat government amended its APMC Act through an ordinance issued this week. The new provisions also brought livestock, poultry and fish under the ambit of the new Act.

Gujarat government also increased the participation of farmers in the management of local Mandis.

Similarly, BS Yeddyurappa government in Karnataka also approved an ordinance on Thursday to amend the APMC Act to allow farmers to supply their produce to the end consumers.

BJP ruled Madhya Pradesh and Uttar Pradesh have also amended their APMC Acts recently.

What is APMC Act or Mandi system

Under the Agricultural Produce Marketing Act, states set up APMC committees or Mandis where farmers sell their produce to traders.

On the basis of the geography, States divide the area to set up Mandis and sub-Mandis. There are over 2400 principal APMC Mandis, and over 4,800 sub-Mandis are there in the country where farmers can sell their produce according to their geographical area.

In case of food grains and commercial crops like oilseeds and others, farmers are not allowed to sell their produce outside their specific Mandis.

The system was devised to prevent the exploitation of farmers and ensure good returns to them. However, it also restricts them from selling their produce outside the Mandi system.

APMC or the Mandi system has often been blamed for the rise of middlemen and intermediaries who pocket most of profits as the benefits of high prices paid by consumers do not reach to farmers due to middlemen in the system.

Farm sector experts like Dr P Chengal Reddy demand immediate removal of restrictions imposed by APMC and Essential Services Act so that farmers can directly enter into contract with buyers of their choice and sell their produce anywhere in the country.

(Article by Krishnanand Tripathi)