Thread by @gchikermane

A thread on, and chronology of, past 20 years of discussions, debates and discourses around farm reforms — which committee said what — says end the tyranny of APMC and Essential Commodities Act, allow farmers to flourish
[Links to all primary documents below.]

1/n

https://twitter.com/gchikermane/status/1337638957354369025

19 December 2000: Expert Committee set up by the Ministry of Agriculture under the chairmanship of Shankerlal Guru.
• Call for ideas to promote agricultural growth
• Ensure that a greater share of the ultimate price of the agricultural produce goes to farmers
2/n

29 June 2001: Shankerlal Guru Committee submits report
• Practically, farmer has no liberty to sell his produce in his village or to retail chain, processor, bulk buyer directly
• Remodel APMCs
3/n

1 July 2001: Report of Task Force on Employment Opportunities, chaired by Montek Singh Ahluwalia
• The Essential Commodities Act should be repealed
• It is absolutely essential to liberalise [APMC] and allow competing markets to be set up.
4/n

4 July 2001: RCA Jain Task Force
• All State governments should amend their respective APMC laws
• Enable private and cooperative sectors to establish agricultural marketing infrastructure and supporting services
• Delink MSP from procurement
5/n

9 September 2003: Model APMC Act
• Section 14: No compulsion on growers to sell produce through markets administered by APMC
• Chapter VII: a new Chapter on ‘Contract Farming’
• Provision made for direct sale of farm produce without routing it through notified markets
6/n

29 December 2004: National Commission on Farmers (NCF), chaired by M.S. Swaminathan, First Report
• Amend APMC Act, decentralise the system, permit marketing by other players to achieve goal of ensuring better returns to the growers and good quality products to consumers
7/n

11 August 2005: NCF, Swaminathan, Second Report
• Reforms in APMC Acts necessary for creating a nation-wide integration of the agriculture markets
• Review the Essential Commodities Act
8/n

December 2005: FAO Report
• Essential Commodities Act has outlived its utility
• APMC Act a major hurdle on free movement of primary agriculture products, results in double taxation, creates monopolies
• Policy should give farmers liberty to market their produce anywhere
9/n

29 December 2005: NCF, Swaminathan, Third Report
• The Essential Commodities Act, 1955…may be put under suspended animation for the present and revived if any emergency situation develops, for a limited time, for a specific commodity and in a specified area
10/n

29 December 2005: NCF, Swaminathan, Third Report (cont)
• APMCs have failed to provide adequate infrastructure at the mandis
• APMCs have also not played any significant role in bringing better market information to farmers
11/n

13 August 2006: NCF, Swaminathan, Fourth Report
• Essential Commodities Act and APMC Acts need to be reviewed in order to meet the requirements of modern agriculture and attracting private capital in this sector
• Farmer wants different options for marketing his produce
12/n

4 October 2006: NCF, Swaminathan, Fifth Report, Volume 1
• APMCs need to change their role from regulatory to developmental
• Encourage, support farmer’s cooperatives and private sector to operate the wholesale agriculture produce markets and provide competition to APMCs
13/n

4 October 2006: NCF, Swaminathan, Fifth Report, Volume 2
• Essential Commodities Act…acted to the detriment of interest of the farmers
• Farmers selling their produce in APMC feel that traders and management connive and often cheat them
14/n

4 October 2006: NCF, Swaminathan, Fifth Report, Volume 2 (cont)
• Need for greater say of farmers in managing APMCs particularly in auction system
• NGO should be permitted to buy directly from farmers
• Benefits of APMCs have not reached small, marginal, medium farmers
14/n

February 2012: Economic Survey 2011-12, Ch 8
• Mandi governance is an area of concern
• Perishables could be taken out of the ambit of APMC
• Recent episodes of inflation in vegetables and fruits have exposed flaws in our supply chains
15/n

February 2012: Economic Survey 2011-12, Ch 8 (cont)
• As APMC was created to protect interests of farmers it will be in the fitness of things to give farmers the choice of going to the PMC
• The need is to pursue further reforms in the state APMC Acts
16/n

22 January 2013: Committee of State Ministers
• APMC Act, Essential Commodities Act need to be amended to ensure barrier free storage, movement of agricultural commodities across States
• This will help contain price fluctuations, ensure optimum management of supply chain
17/n

February 2013: Economic Survey 2012-13, Ch 8
• Many states yet to adopt the Model Act
• It is necessary to complete the process of market reforms to provide farmers an alternative competitive marketing channel for their agricultural produce at remunerative prices
18/n

February 2014: Economic Survey 2013-14, Ch 8
• Examine APMC Act, Essential Commodities Act, and any structures whose provisions are restrictive and create barriers to free trade
•Examine inclusion of agri taxes underGST
• Incentivise private sector to scale up investments
19/n

February 2015: Economic Survey 2014-15, Vol I, Ch 8
• Though market fee is collected like a tax, revenue earned by APMCs does not go to State exchequer, does not require the approval of State legislature to utilise the funds
• Thus APMC operations are hidden from scrutiny
20/n

August 2017: Economic Survery 2016-17 Vol 2, Ch 7
• Price risks emanating from an inefficient APMC market are severe for farmers in India
• Need to remove restrictions on internal trade on agricultural commodities, dismantle fragmented legislations that govern agriculture
21/n

3 January 2019: Standing Committee on Agriculture (2018-2019
• Scarcity of marketing platforms and mismanagement and corruption in APMC markets have created a situation where farmers are being deprived of fruits of their hard-earned labour leading to low price realisation
22/n

Standing Committee (cont)
• Urgent need for radical reform in APMC Act to provide justice to farmers
• Remunerative pricing for farmers cannot be ensured unless marketing platforms for farm produce are enhanced, functioning of APMC markets made democratic and transparent
n/n