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  • ‘New Ordinance will boost cashew sector growth in Karnataka’ 06/10/2020

    Jun 10th, 2020

    The Karnataka Cashew Manufacturers’ Association (KCMA) has said the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance 2020 will help boost the growth of cashew industry in Karnataka. Welcoming the Ordinance, Subraya Pai, President of KCMA, told BusinessLine that both farmer and trader will benefit as they can freely transport produce all over the country and opt for the best markets. With this, distress sales will come to an end.

    APMC cess

    Stating that APMC in Karnataka was charging 1.5 per cent cess on raw cashew nut (RCN) uniformly, irrespective of the place of origin. This was incurring additional cost to cashew manufacturers in the State. The neighbouring States do not charge APMC cess on RCN, he said. With this Ordinance, inter-State movement of raw of cashew nut will become hassle-free, as there will not be any requirement of permits and fees, he said. Stating that the Agricultural Produce Market Committee (APMC) was conceptualised more than five decades ago, Pai said the objective was to ensure fair price to farmers, dissemination of market information and to prevent their exploitation by middleman and traders.

    He said the APMCs focussed mainly on generating more revenues over the years, and started collecting market fees on trader-to-trader transactions, and on transactions done outside the APMC market yards. The APMCs also failed to evolve with time. They have not adopted new technologies and have become a hindrance to building national markets, Pai said.

    APMCs to stay

    This Ordinance will enable farmers and traders to enjoy the freedom of choice in sale and purchase of agricultural produce. The existing APMC markets will continue to function and can be used by farmers and traders if they wish to do so. But there will no longer be any compulsion to use APMCs. Pai said this would facilitate barrier-free marketing of agricultural produce.