Should not be a State subject
Below is a MRR and PLR article in category Food Beverage -> subcategory Other.
Should Agriculture Be a Central Subject?
Summary
The Confederation of Indian Industry (CII) hosted a seminar on reforms in the Agricultural Produce Market Committee (APMC) Act and its implications for Southern India. This event, organized by the CII-Southern Region's Agri Business Sub-Committee, highlighted the need to centralize agricultural policies to foster growth.---
Seminar Highlights
The CII's recent seminar aimed to address the urgent need for agricultural reform in India. This initiative, spearheaded by the Agri Business Sub-Committee of the CII-Southern Region, delved into the APMC Act and its effects on Southern States. Keynote speaker Mr. Shankarlal Guru, Chairman of the International Society for Agricultural Marketing, emphasized the necessity of redefining agriculture as a central rather than state-managed subject to shield it from political influences. He advocated for contract farming to introduce modern technology and practices into the sector.
The APMC Act: Challenges and Opportunities
Under the current APMC Act, agricultural products must be sold in government-regulated markets, which impose heavy taxes and fees while offering limited services. This system prevents private sector integration and restricts farmers from entering direct contracts with buyers. Consequently, there is little incentive for farmers to upgrade and invest, hindering both domestic and foreign investments in food processing.
Calls for Inclusive Growth
Addressing the audience, Mr. Sivakumar, Chairman of the Agri Business Sub-Committee and Chief Executive at ITC Ltd., highlighted a pivotal moment for Indian agribusiness. Despite agriculture employing 57% of the nation’s workforce, it contributes only 27% to GDP. Recognizing this disparity, he stressed the necessity for reforms that promote direct marketing and contract farming to boost agri-exports.
Aligning Policies with Market Needs
Prof. S. Raghunath from the Indian Institute of Management-Bangalore discussed the need for efficient distribution and transparent supply-demand systems in agriculture. Although India is a leading producer of vegetables and fruits, about 40% of produce goes to waste due to inadequate infrastructure and a disorganized supply chain. He advocated for reforms that encourage organized market participation, thereby eliminating inefficiencies.
Government Initiatives
The central government has urged states to amend the APMC Act to allow farmers direct access to markets and contract opportunities. A central scheme for developing agricultural marketing infrastructure, grading, and standardization has been approved. States that reform the APMC Act can access assistance under this scheme.
Industry Perspective
Both the government and the industry acknowledge the restrictive nature of current policies on internal trade. The PHD Chamber of Commerce and Industry (PHDCCI) noted that outdated controls continue to hinder the agricultural sector, originating from an era of shortages.
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Conclusion
Reforming the APMC Act could enhance the agricultural landscape in India by creating a more supportive environment for farmers and businesses. Aligning state policies with modern market models and reducing bureaucratic barriers will be crucial in realizing the full potential of the agricultural sector.
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