In a move to contain food inflation, which faces the risk of a re-emergence if monsoon falters, the Delhi Government has decided to allow farmers to sell fruits and vegetables directly to consumers bypassing commission agent.
The Delhi Agriculture Marketing Board has delisted fruits and vegetables out of the ambit of Agricultural Produce Market Committee (APMC) Act to iron out supply side inefficiencies to tackle rising prices.
This means that farmers are free to sell their products anywhere in the city and there will be no need to sell their items at Azadpur, Keshopur and Shahdara mandis only.
Officials say that this will create a direct contact between the farmers and retailers in Delhi. This means, if farmers from Haryana and Rajasthan want to sell their produce in Chandni Chowk or Trans Yamuna areas, they can sell it directly.
The middlemen buy farm produce at cheaper rates and supply them to the market for a much higher price. By the time the produce, such as vegetables and fruits, reach the common people, their prices go up by four to five times the original cost.
A former chairman of Azadpur mandi, which is largest vegetable and fruit wholesale market in Asia, criticised the move, saying that such amendments in the APMC Act will lead to exploitation of the farmers. “The aim of this move is to help multinational companies or retailers and bring FDI in retail,” he alleged.
He fears that if the law is repealed, unregulated private monopolies may spring up. Besides, many States may not be willing to go for a drastic revamp. Agriculture is a State subject and eventually it is up to the States how far they want to go.
The Ministry of Agriculture had, in 2003, formulated a model APMC Act but it is yet to be implemented by all the States, though some have allowed contract farming and direct sourcing from farmers, while others have taken fruits and vegetables out of the ambit of the law. However, in States like Delhi, a mandi-cess is levied even if corporates are doing direct sourcing.