Three States allow free trade of agriculture produce outside mandis, without any levy

Rajasthan, Gujarat and Karnataka are now amongst a handful of States that let free of charge trade exterior mandis, without the need of charging any expenses for the identical, thus kicking off reforms in agricultural trade.

In most significant States, agri trade is controlled with Uttar Pradesh and Madhya Pradesh issuing licenses and charging mandi costs even for immediate purchasing from farmers. In the Union Territory of Chandigarh, direct acquiring from farmers is not authorized at all.

When the Centre introduced in the controversial farm legislation, one particular of the key arguments was to enable farmers “freedom to sell” any where and it was also claimed that the opposition to the reforms were being from Punjab, Haryana and western Uttar Pradesh. Even so, an exhaustive research of existing agricultural trade shows that a several States have taken cue from the now-abandoned farm regulations and commenced reforms in trade of farm make. Nevertheless, in most States, this remains mired in obduracy to take reforms.

“It is great that States proceed to make a decision on this concern and are not divided on political traces. But, any reforms in agricultural marketing and advertising at the all-India amount will be dependent on the outcomes of the present-day Assembly elections in 5 States. On the other hand, what is extra crucial is to make a Central regulation on inter-Point out motion of ‘food stuff’ which is beneath concurrent checklist and that will facilitate buying and selling,” claimed previous Union Agriculture Secretary Siraj Hussain.

Mandi rates

Mandis throughout States charge diverse expenses, cess or person costs and it is uniform everywhere besides Gujarat and Maharashtra exactly where the neighborhood Agricultural Develop Market Committee (APMCs) are empowered to fix premiums, which fluctuate from crop to crop concerning .5 and 6 for every cent. For de-regulated commodities, generally fruits and vegetables, traders and organizations are authorized to acquire outdoors mandis devoid of paying any expenses. But most of the States acquire 1 for every cent person demand, collected from consumer, if fruits and greens are marketed within mandis.

“It (mandi cost) is a profits design for all the States which they will by no means want to forego, however they know that it is including to the over-all costs of meals items. Moreover, the site of mandi is also this kind of that traders who are purchasing in the mandis are also advertising the things there itself, generally in fruits and greens as vendors flock there. That is why a lot of States levy consumer charge for de-regulated things given that mandi fees can not be gathered from these goods,” explained Anil Dwivedi, a trader in Delhi’s Azadpur mandi.

Chandigarh experienced acquired 86,082.10 tonnes of commodities in its two mandis for the duration of April-February of the existing fiscal, which is better than the entire of 2020-21. The arrivals dropped virtually 40 for every cent last calendar year to 75,752 tonnes from the 2020 levels thanks to the pandemic. The nearby administration rates 2 per cent mandi tax.

On the other hand, Punjab costs 6 per cent mandi tax (which include advancement cess) on wheat and paddy (non-Basmati) though it is involving 1-3 for each cent for Basmati, maize, cotton, fruits and veggies. Haryana rates 4 for each cent on wheat, paddy, arhar, sesame and green fodder, and 1-3 for every cent on other commodities. Uttar Pradesh levies 1-1.5 for every cent mandi expenses/user fees (like cess) on all commodities.

Hussain mentioned when the direct acquire from farmers should really proceed, States really should also obtain info on how significantly commodities are traded at what prices to body their policies as the principal goal is to help farmers realise far better charges for their crops.

Released on


March 08, 2022