FM calls for reform in agricultural marketing

Finance Minister Pranab Mukherjee, expressing his concern over rise in food inflation has said that the prices could be kept under check through institutional reforms in agricultural marketing and he would discuss the issue with states.

FM raised his concern after the WPI inflation accelerated to 7.23% in the month of April as compared to 6.89% in March 2012. Buildup inflation in the financial year so far was 2.07% compared to a build up of 1.74% in the corresponding period of the previous year. On the food front, the inflation increased to 10.49 percent in April from 10.66 percent in March, mainly on the back of spurt in prices of vegetables, fruits meat, milk, pulses, and other items.

Though, agriculture marketing is a state subject and most of the states have their own Agricultural Produce Market Committees Act (APMC) to regulate such sales. But the Central government had circulated a model APMC Bill to bring reforms in the agricultural sector. However, so far only 16 states have amended their Acts based on the model provided by the centre. The Model APMC Act leads to de-democratisation of agricultural markets and therefore limits the rights of the farmers to control agricultural markets.