National agri market to rid farmers of arhtiyas

Sarbjit Dhaliwal

Tribune News Service

Chandigarh, July 3

With the Cabinet Committee on Economic Affairs clearing the proposal to create a national common market for agriculture producers at its meeting yesterday, the commission agent (arhtiya) system will be eliminated in due course.

The common electronic platform would enable the farming community to sell their produce anywhere in the country. Farmers would be able to book orders through this platform from across the country.

For instance, if a farmer is offered good price for his produce by a trader in Kerala, the farmer can book the order and supply the same directly to the trader. Or the trader can pick the grain from farmers’ field or home. On the receipt of the grain, the buyer will pay market fee and other charges to the mandi board of the state to which the farmer belongs. As the farmer will be selling directly to the trader, the process will remove the middlemen. As of now, agents charge 2.5 per cent commission on the sale proceeds.

Farmers currently sell their produce through market committees established under the Agriculture Produce Market Committee Act. Under the Act, no private market can be established in the state where farmers could sell their produce directly to the buyers.

To avoid opposition at the level of the states concerned, the Centre has protected the revenue earned by the state government by way of the market fee, rural development and infrastructure fund and VAT etc that is charged on the sale of foodgrain from the buyer. The Cabinet Committee has made it clear that the buyer will have to pay all these charges to the market committee concerned on the receipt of goods from the farmer even after procuring it directly from him. However, there is no reference to commission agents in the cabinet committee’s decision.

Asked about the step taken by the Centre, Punjab’s Financial Commissioner (Development) Suresh Kumar said the state government would support any decision which would benefit farmers and ensure effective marketing and higher price for their produce.