Govt threatens to dissolve APMCs, scrap agent permits if strike continues

The state government has threatened to dissolve elected committees that control local agriculture produce markets (APMCs), and also scrap licences of persons who act as middlemen between farmers and traders, if they don't call off an indefinite state-wide strike that started early today.

Also Read: Mumbai: Pay more for vegetables as traders to go on 'mass leave'

Locals buy vegetables at the APMC market at Vashi yesterday before the strike. Pic/Sneha kharabe

The APMCs and middlemen, also called as adatiyas (commission agents) are protesting the government's recent amendments to the Agricultural Produce Market Committee (APMC) Act, which allows farmers to sell their products directly to big and small consumers, by going on indefinite ‘leave'.

The supply of vegetables, fruits and grains is bound to get affected because the APMCs control more than 80 per cent of the agriculture produce trade in the state. The strike will impact the supply chain in the state, making essential agro produce dearer.

In fact, the supplies to Mumbai that come from Vashi's APMC Market are already hit and the prices of the vegetables and fruits are high. Many people tried to buy as many vegetables and other essentials as they could, anticipating a shortage for a while.

The amendment
As per amendment to the APMC Act, trading of fruits and vegetables is not mandatory any more. This means that the farmers will have access to free market and they can directly sell their produce to retailers or consumers at lower prices, as they don't need to pay agents commission, loading and unloading charges and market fees.

Also, it asks the buyers to pay commission, which till now was recovered from the farmers who bring their produce to market yards for sales. On the other hand, the commission agents argue that the new act should also apply to people who trade outside the market yards.

Govt won't give in
Marketing Minister Subhash Deshmukh told mid-day on Monday that the government was not prepared to succumb to pressure tactics of committees and commission agents.

"Whatever we have done is for the benefit for the farmers and consumers for whom it's a win-win situation. We will not only dissolve the committees, but also scrap the licences of commission agents if they don't call off the strike," he said.

The issue is turning out to be a political battle between the BJP and Congress-NCP, the erstwhile ruling parties of the state that control most of APMCs in the state. The existing marketing law empowers the government to get the erring APMC panels dissolved.

A member of the APMC said, "The APMC should be dissolved, so that the traders can connect directly with the farmers, and don't have to pay all other necessary taxes and mathadi workers, which is a burden to us."

On Monday many of the distributors stored commodities in large quantities. "We can take spices and groceries in large quantity. But fruits and vegetables can't be taken in stock as due to the rainy season they will get spoilt," said a Mumbai-based retailer.