Penalty for non-implementation of APMC Acts: Montek

By Staff
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Google Oneindia News

New Delhi, May 13: In an effort to modernise Agricultural 'Mandis' and ensure proper prices to farmers, the Planning Commission is pushing State governments to amend the Agricultural Prices Marketing (APMC) Acts and notify new rules.

The issue in its entirety is slated to come up before the Full Planning Commission meeting tomorrow, to be Chaired by Prime Minister Manmohan Singh. The core agenda of the meeting is stepping up the growth rate of agriculture to four per cent per annum, from the present low level of about a little more than two per cent.

Planning Commission Deputy Chairman Montek Singh Ahluwalia told sources that he was concerned at the fact that many State governments have yet to frame necessary rules, even though most of them have enacted the APMC Acts. This is preventing them from taking benefits offered under the National Horticulture Mission (NHM).

Highly placed sources in the Commission said the Plan Panel Deputy Chief has written to Agriculture Minister Sharad Pawar to stop allocations to States under the NHM which fail to adopt new rules by September 30, 2007.

Dr Ahluwalia has stated that amendments are necesssary to modernise the 'Mandis' so that farmers can get the right prices for their produce, thus minimising exploitation in the hands of traders.

Dr Ahluwalia said many layers are involved in the existing Mandi system and money changes hands at these various layers. Thus the farmer gets only a small amount for his produce and the rest goes to middlemen.

The well known economist said modernisation of the Bangalore Mandi, with full computerisation facilities, could serve as a role model for upgrading facilities of other 'Mandis'.

Horticulure is considered to be a key element in a strategy aimed to step up growth rate of the agricutural sector. Indications are that the allocations under the NHM will be stepped up, an issue which may figure at the Monday meeting.

Sources said the Eleventh Plan Working Group on Horticulture has projected requirement of Rs 41,000 crore, almost entirely from the Centre. Of this Rs 26,000 crore is for existing schemes of the Department of Agriculture (such as NHM and Micro-irrigation) on which Tenth Plan expenditure was Rs 3,900 crore.

The large share of horticulture in total outlay of the Department of Agricuture is a pointer to the relative priority of diversification and food security.

For all other food crops and for entire Natural Resource Management, the proposed Eleventh Plan outlay is less than Rs 12,000 crore.

The Department has now proposed a Rs 850 crore for Wheat Production Programme for ensuring Food Security. This needs to be accompanied by similar measures for rice in States with surplus ground water and for coarse cereals and pulses in dryland areas, the sources added.

UNI

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