Rajasthan is planning to bring back all agriculture trade exclusively under mandis (agri market yards)– both private and APMCs (agricultural produce marketing committees) – as well as sub market yards after the repeal of the three controversial farm laws by the Centre last month. Currently, agriculture trade outside mandis are allowed in the State, which was facilitated last year amid Covid pandemic to avoid large gathering in mandis.

Drop in arrivals

Rajasthan is the second State to come up with such a move after Maharashtra. Last week, APMCs in Maharashtra issued notices to farmer producer companies for carrying out trades outside the purview of the mandis in the State.

The Rajasthan Government is likely to make necessary changes to the regulations in a week, a source said, adding that the step will help improve revenue from the fees collected at mandis. The State has over 140 APMC mandis, besides 12 mandis have been permitted under private sector.

Arrival of agriculture produce in mandis across the State have declined 15 per cent to 5.02 million tonnes (mt) during the April-November period of the current fiscal from the year-ago period, official data show. Rajasthan, the largest producer of mustard, moong and bajra, was among the few States that undertook agriculture market reforms in 2011 by allowing exporters and processors to directly purchase from farmers with certain conditions like minimum quantity and turnover.

However, the State passed a Bill in the Assembly last year to nullify the implementation of the three Central laws. At the same time, it made changes in rules to allow free trade outside mandis. It also designated all agro-processing units as market sub-yards, thereby liable to pay mandi fees on the direct purchases made by them, which was stayed by the High Court.

“We had allowed free trade outside mandis unofficially after the lockdown was announced in 2020 as most people were scared to venture out. Besides, we had to prevent disruption of supplies of agricultural produce. As a result the arrivals in mandis were substantially down at about 5.9 mt in April-November of 2020 against 7.5 mt during corresponding period in 2019,” a State official said.

Discouring investments?

However, some experts said the step to going back to “mandis only” policy for buying and selling of crops may not be right move when the market is developing and investment is looking up. As many as 617 agro-projects are in the pipeline with an estimated investment of ₹1,255 crore. The State also plans to hold an investment summit next month where the main focus will be on modern farm technology, agri processing, agri export and food processing.

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