Punjab is considering to introduce Model Agriculture Produce Marketing Corporate (APMC) Act to counter lowering agricultural produce and rising farmer suicides in view of un-remunerative prices for the farm produce.
Highly placed sources told FE on Friday that a committee headed by financial commissioner (development) Punjab, has been formed. Its other members are secretary, Mandi Board, director, agriculture, Punjab, managing director, Punjab Agro Industries Development Corporation a Farmer’s Commission has been formed in this connection. Balwinder Singh Sidhu, director, agriculture, Punjab told FE that the committee held its first meeting on Friday frame APMC Act on the lines of Model Act of 2003 initiated by the Union government. Insiders said that the Draft APMC may be ready by September 15, 2007. After that it would be sent to law department of the state for ratification.
Thereafter it can be introduced in the state assembly else it can be brought as an Ordinance. Sources said that Punjab had almost finalised all details at the fag end of year 2006 but the Ordinance did not see the light in view of assembly elections held in February this year.
Haryana has already implemented the APMC Act. Punjab has followed the suit borrowing much of the details from Haryana. The government is of the view that the Act would help in distress during failure of crops, diversification and contract farming in the state. Though a number of big multinational companies, including Reliance, Bharti and ITC, are keen to invest in agriculture in contract farming but crop diversification is still on an experimental stage.
The highlight of the APMC Act would be the introduction of contract farming, marketing of produce, establishment of private mandis etc. In fact contract farming which was introduced in the state with much fanfare, failed to raise the momentum as was expected. The contract farming could not catch up due to various reasons primary among themuneducation of the farmers. The companies involved in contract farming has not discussed the terms and conditions of the contract farmingwith the farmers. Once the Act is framed, it can pave way for introduction of spot trading on foodgrain as proposed by National Commodities and Derivative Exchange and may make MSP almost redundant and procurement only for building a buffer stock for Public Distribution System.
