The Karnataka Cabinet on Thursday gave its approval to a new bill on agricultural markets (APMC), replacing the one enacted by the previous BJP government in the state.
The new Bill will come up in the budget session starting July 3.
"We had said that we will change the APMC Act, the Cabinet has approved the new bill. It will be introduced in the upcoming Assembly session," Agricultural Marketing Minister Shivanand Patil told reporters here after the cabinet meeting.
He said, "The intention with which the BJP government brought the law was not successful; for example their intention was to get good prices for farmers, but it has not been successful. Also more than one lakh families that were dependent like Hamals, traders, farmers have faced distress and bitter experience after this law came into effect, also trading at the market has come down significantly compared to 2019-20."
“Cumulatively, the APMC markets used to earn a revenue of around Rs 620 crore in 2019-20, which has nosedived after BJP govt brought the law to around Rs 300 crore in 2021, Rs 200 crore in 2022, and Rs 194 crore in 2022-23. We need to arrest this fall and need to increase revenue of the markets, so bringing in new law is necessary,” he added.
The APMC law that was brought in by the previous BJP government had removed restrictions on the sale of agricultural produce, thereby allowing private individuals to set up trade markets where farmers can sell.
It also curtailed the powers of local Agricultural Produce Marketing Committees (APMC) and allowed private individuals to start agricultural trading - buying and selling - if they hold a permanent account number (PAN). Before that, farmers had to sell only in notified markets or mandis.
Several farmer organisations and the Congress then in opposition had staged protests against the APMC law enacted by the BJP government. Speaking about the changes that will be brought in, Patil said, "we are saying that wherever they trade -- whether inside or outside the market -- the laws that are applicable in the market will be applicable outside too. Also, it will be the same with respect to fees and penalty."