Farmers can sell directly in Congress-ruled states

NEW DELHI: Congress-ruled states will delist "fruits and vegetables" from their Agricultural Produce Markets Committee (APMC) Act by January 15, a move that would give free choice to farmers to sell their produce directly in markets. The move to remove middlemen is seen as an effective way to check hoarding and price rise.

The decision was taken at a meeting of 12 Congress chief ministers with party vice-president Rahul Gandhi to discuss ways to curb inflation, a sensitive political issue that has gained urgency in the party ranks after the rout in recent assembly elections. Congress chief Sonia Gandhi had identified high food prices as a reason that influenced voters against the party.

Congress has also asked its CMs to crack down on hoarders and black marketing by invoking Essential Commodities Act stringently and by putting the "chronic offenders" behind the bars.

Any decision to put vegetables and fruits outside the ambit of APMC would radically change the way farmers sell their produce. Presently, farmers have to sell at "mandis" that is normally a closed group of traders who indulge in cartelization. The move would not require any change in the Act but can be done by amending the rules. A government official said, "It would allow people, be it individuals or traders, to buy directly from the growers and would end the exploitation of farmers. Farmers are forced to sell their produce at lower price determined by a cartel of traders in the mandis."

It is felt if Delhi had amended the APMC Act in time, it would not have faced food inflation that finally turned the public opinion against Sheila Dikshit government and routed it out earlier this month.

The RBI has consistently flagged the serious risk posed by price pressures and has called for government efforts to restore supplies. Experts say the problem has to be tackled jointly with a focus to increase supplies, smash the ring of middlemen in the chain and take urgent measures to reform the APMC Act. For nearly 10 years, there has been tardy progress on this vital issue.

The Congress-ruled states will also initiate steps to open fair price shops, government-owned or run by women's self help groups, to sell fruits, vegetables and eggs.

They would also implement immediate reforms in the public distribution system as laid down in the food security law to eliminate leakages and to ensure the actual beneficiaries.