The Ministry of Agriculture has again made it clear that private mandis, licensed under respective State Agricultural Produce Market Committee (APMC) Acts, are not governed under the new farm law of “The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020”. These private mandis alongwith APMC mandis in the States are subjected to taxes, fees and cess as per respective State laws.
In a written reply to a question in the Lok Sabha, Union Agriculture Minister Narendra Singh Tomar said that the states having efficient services at APMC market premises will continue to attract farmers and generate revenue.
MP TR Balu had asked whether the new farm law allowing private mandis to be set up will actually lead to the dismantling of the APMC structure itself, as APMC mandis will cost taxes and compliance on part of the buyer, increasing preference for private mandis and deterioration in farmers’ terms of trade in reality. In reply to another question whether it is a fact that the new farm law also removes stocking limits for farm produce, the Minister said it provides that any order for imposition of stock limits shall be based on price trigger which is 100% increase in retail price of horticultural produce and 50% increase in retail price of non-perishable agricultural foodstuff over the immediately preceding twelve months or average retail price of last five years, whichever is lower.