Karnataka Cabinet Clears Ordinance To Dismantle APMC Monopoly, Allows Farmers To Sell Produce Directly To End Market

In continuation of what appears to be a coordinated policy action by BJP ruled states, Karnataka chief minister B.S.Yediyurappa took the ordinance route to usher in radical reforms to the Agricultural Produce Marketing (APMC) that removes restrictions on where the farmer would be able to sell his produce and get better prices by eliminating the middlemen.

BJP-ruled Madhya Pradesh, Uttar Pradesh and Gujarat have already made amendments to the APMC Act.

The State Cabinet on Thursday cleared the Ordinance to bring in changes to the Agricultural Produce Marketing Committee (APMC) Act that will enable farmers to sell their produce in farm fields or anywhere without the intervention of APMCs. The ordinance will allow food processing companies to directly procure commodities from farmers without the role of APMC.

The changes in the Act will come into effect after Governor Vajubhai Vala give his assent to the Ordinance, Law and Parliamentary Affairs Minister J.C. Madhuswamy told media after the Cabinet meeting.

The Union government has been nudging the state to take the Ordinance route to bring in amendments to the APMC Act and adopt the Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, of the Centre.

The Centre has also been urging the states to encourage the adoption of National Agriculture Market or e-NAM, an electronic platform that links all mandis to create a unified nationwide market to help farmers secure better prices for their produce.