Karnataka opens up agri marketing

BANGALORE: After dragging its feet for several years on opening access in agricultural produce marketing to the private sector, Karnataka has finally come out with a legislation on adopting the Centre’s model Act of 2003 for development and reformation in regulation of marketing of agricultural produce.

Under the Karnataka Agricultural Produce Marketing (Regulation) Amendment Bill, introduced in the state legislative assembly on Wednesday, the scope of the original Act of 1966 has been widened to include private sector to buy or sell notified agricultural commodities either directly or through his agents not only from the duly formed Agricultural Produce Marketing Committees (APMCs), but from one or more private market yards or farmer-consumer market yards.

It also seeks to allow contract farming, establishment of sport exchange for e-trading ad setting up a revolving fund to implement the floor price scheme to protect the interests of farmers against distress sale.

The definitions of agriculturist, buyer, marketing and processing are expanded under the proposed legislation, which also empowers the director or commissioner of agricultural marketing to issue licences for establishment of private market yards and farmers-consumer markets for the purpose of developing competitive marketing infrastructure to ensure remunerative prices for the farmers.

The contract farming system contemplated under the proposed legislation provides for marketing of agricultural produce with a pre-determined price so as to ensure constant supply of the commodities to the agri-processing sector so that the farmers get remunerative prices through value addition.

Agricultural Produce Marketing Standards Bureau is also proposed to be set up to take up quality certification and branding of commodities to encourage export-oriented activities in the field of agricultural marketing.