After the three new central legal guidelines that enable barrier-free buying and selling of agriculture commodities throughout the nation, the Centre has been asking states to scale back the mandi tax to 0.5%, in order that the market yards managed by agricultural produce market committees (APMCs) develop into aggressive. As a primary step, at the least the market charges on the digital Nationwide Agriculture Market (e-NAM) platform should be diminished, the Centre has instructed the states.

“Ideally, there ought to be no market charges on e-NAM after the brand new legal guidelines. Nevertheless, for the reason that e-NAMs have been created to deliver mandis beneath one platform, the market charges charged by mandis remained payable from its inception. Until the states agree, the market charges can’t be waived off,” stated a senior official of the agriculture ministry.

Mandi charges and different imposts are levied within the combination vary of 1-2% in many of the states besides in Punjab, which has 8% (market payment and rural growth cess 4%, every). Haryana final month diminished the charges to 1% from 6% earlier. Rajasthan has diminished it to 2% from 3% after the Central legal guidelines got here into power and it additionally passes on 0.25% of market charges to farmers in the event that they commerce on e-NAM portal. In many of the states there isn’t a market payment on fruit and veggies and plenty of had delisted these horticulture produce from APMC legal guidelines even earlier than the Central legal guidelines.

Launched by the Centre in 2016, e-NAM is a web-based buying and selling platform for agricultural commodities throughout states. To date, 1,000 mandis throughout 18 states and three Union Territories have been built-in with e-NAM platform.  The turnover of commerce on e-NAM elevated 74% on 12 months to Rs 30,845 crore throughout FY20. The amount went up 44% to 77.13 lakh tonne throughout the interval.

Beneath one of many three central legal guidelines, farmers have the liberty to promote their produce in any market inside and out of doors the state of their residence, with out being hamstrung by the APMCs. No state levies might be imposed on commerce exterior the APMC mandis and the farmer is meant to obtain fee inside three working days after deal. In accordance with the brand new regulation, anybody having PAN card can commerce, whereas the Centre reserves the precise to put down any new procedures, together with obligatory prior registration.

As farmer producer organisations (FPOs) are popping out as alternate options to APMC-owned mandis, the Centre can be eager to see that on-line buying and selling platform is developed within the personal sector, notably by FPOs. Many FPOs in Maharashtra are more and more bypassing mandis to enter into offers with giant personal gamers. To draw extra farmers into their fold, the FPOs are additionally providing extra costs to farmers. As an example, Jai Sardar FPO in Buldhana district of Maharashtra final month paid Rs 10/quintal bonus to maize farmers, from whom it had purchased the crop, by sharing a few of its revenue.

The APMCs of Maharashtra witnessed the lack of 25-30% of their incomes between June and August this 12 months as in comparison with their earnings for a similar interval a 12 months in the past attributable to decrease arrivals. Uttar Pradesh had collected Rs 172 crore in mandi tax/cess income throughout June-July, a drop of 36% year-on-year. Following the enactment of latest legal guidelines, the mandi arrivals have dropped in seven out of 10 main kharif crops particularly paddy (frequent), jowar, bajra, maize, arhar, moong, urad, soyabean, groundnut and cotton throughout October from the year-ago interval. The falling pattern continues within the first fortnight of this month and the arrivals dropped in all crops besides groundnut.