Direct Procurement A Welcome Step But APMCs Remain Important

The estimates from the ministry of agriculture suggests the best crop this time in the past five years. From wheat to oil seeds and from fruits to vegetables, India is expected to record bumper crop this year. However, Covid-19 has changed things.  

Last week itself, Agriculture Minister Narendra Singh Tomar announced start of crop procurement from 15 April. Although, Agriculture Produce Marketing Committees (APMS) are believed to be the main source of such procurement the said agencies are a direct challenge to price realisation for small and marginal farmers. 

Keeping in mind that harvesting may pose challenge, many of the states have given exception to harvesting equipment and other necessary tools that were required to harvest the bumper crop. Meanwhile supply chain management was going to be the real challenge. A traditional way to operate via APMCs require physical appearance of stakeholders and most of the times in the groups. When social distancing has become mantra of safety operations procurement via APMCs, rang alarm bell and government had focused on E-NAM. These platforms require less of physical appearance and also proves good to get a handsome price for farmers. Also the gramin rural agriculture markets and farmers producer organisation (FPO) have quite a critical role to play during this tough time.

During a critical conversation with chief ministers of states , Prime Minister Narendra Modi also emphasized on incentive's to direct procurement, a suggestion endorsed by Uttar Pradesh CM Yogi Adityanath as well as few others. The problem started arising when farmers were not getting remunerative prices in Mandis in the name of lockdown. 

Vijay Sardana an agriculture policy expert also pitched for direct procurement. Saradana said, " When mandis are failing farmers are neither getting price nor customers, why state governments stopping direct dealing between buyers and farmers? Whose interests state governments are serving?" says he. It was also evident from various statements by PM  & FM that they wanted alternate to APMC. This may be a big reason why a BJP ruled states came forward with the suggestion of endorsing direct procurement. 

Now the problem is when APML act that was considered as alternative to APMC act is yet to be adopted and fully operational what relevance would APMCs have? Ashok Dalwai, chairman of empowered committee for doubling of farmers income says, "We shouldn't close them(APMCs) as they have to be used as larger aggregation platforms. They have a role because we have small farms. Small lots. They have to be aggregated at a place." 

Government's next step may be to allow food companies for direct procurement from farm-field. Which is subject to how states may respond to it, because on the one hand small farmers require direct procurement, they are the one require the APMCs as well. With the mass movement of labours has become dangerous during lockdown, excepting farmers from lockdown is a welcome step besides it solves the real purpose of justifiable price realisation to farmers and to make sure that upcoming sowing season can be saved from the adverse impact of the pandemic.