BENGALURU: Having made a beginning in delivering its promise on farm loan waiver, the HD Kumaraswamy government is now keen on ensuring a fair price for crops produced by farmers. The State government has initiated internal discussions to amend the Agriculture Produce Market Committee (APMC) Act by incorporating tough clauses which could mean even imprisonment for private traders who procure farm produce below the Minimum Support Price (MSP) being announced by the Union and state governments annually.
The Narendra Modi government has promised to double farmers’ income by 2022 and had recently announced a substantial increase in MSP for 14 crops for the Kharif season. However, the lack of adequate government procurement centres and funds crunch has put severe limitations in implementation of MSP.
Karnataka Agriculture Prices Commission in its report submitted to state government in 2015 had recommended statutory status for the MSP with penal clause.
“We had requested the National Law School of India University(NLSIU) of Bengaluru to suggest a draft bill for effective implementation of MSP for farm produce. The NLSIU has submitted the Draft Bill which is being discussed for implementation,” TN Prakash Kammardi, Chairman of Karnataka Agriculture Prices Commission, told The New Indian Express.
Maharashtra has made a beginning by passing a bill which has provision for imprisonment up to one year and imposition of fine up to Rs 50,000. “We want our proposed bill to be better than the one passed by Maharashtra. It would be an amendment to APMC Act and Essential Commodities Act. I have held preliminary discussions with Agriculture minister N H Shivashankar Reddy and Cooperation minister Bandeppa Kashempur on the proposed bill which will have a penal clause,” Kammardi said.
State government is concerned about farmers not getting MSP when they sell their produce to private traders. The government is considering a proposal to bring a bill on the lines of Maharashtra to ensure fair price for farm produce, said Agriculture minister Shivashankar Reddy.
However, implementation of such a law is a big challenge. “The Union government has announced 15% commission for traders who procure farm produce at MSP. State government too will have to come out with a similar gesture. We will have to ramp up storage facilities, offer incentives for traders to export or set up units for value addition for farm produce,” Kammardi said.
Not practical, say traders
The proposed Bill could cheer farmers, but the trading community is sceptical. “The difference between MSP and the wholesale market price is huge. The private traders cannot be expected to pay a price higher than the price in the market,” said Ramesh Chandra Lahoti, president, Bangalore Wholesale Grain Merchants’ Association.