Even as some States have begun changing the Agriculture Produce Market Committee (APMC) Act, demand for amendment in other States is gaining ground, particularly on the heels of surging inflation.

A popular perception is that the APMC Act prohibits farmers from selling their produce to anyone outside of a demarcated area. Besides, the Act arms the State Governments to regulate wholesale agricultural markets.

What happens due to this is that farmers do not get fair price for their produce and they go unprotected from exploitation by traders, a recent study has revealed.

In this context, SMC Comtrade, a commodity brokerage arm of SMC group, has urged the Centre to initiate fresh measures for APMC Act reforms.

“In addition, special status should be given to perishables and horticulture commodities with all items being de-listed from Schedule I of APMC Act to enable producers to buy and sell these commodities anywhere in the country,” said the SMC Group Chairman and Managing Director, Mr Subash Chand Aggarwal.

The private sector should be encouraged to develop specialised fruits and vegetables markets that would offer more marketing options.

Multiple levies and taxes charged by different APMC and State-level rules and regulations were also distorting trade, he said, adding that proper infrastructure was also required for storage.

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