170 APMCs dissolved; Maharashtra government to probe irregularities

In a major blow to Congress and NCP, the state government has decided to probe the alleged illegalities in the functioning of agriculture produce market committees (APMCs). The state has also dissolved 170 APMCs, whose elected bodies had completed their tenure, but had managed to get extensions from the government, or had their board of directors replaced by a team of administrators, all political appointees.

APMCs were originally meant to protect the interests of the farmers and consumers. However, coteries of traders, politicians, commission agents and other organised groups, who pull strings in APMCs, have long been accused by farmer organisations of rigging prices, using faulty weights, distorting the market and fleecing agriculturists and consumers. This leads to a huge difference between wholesale and retail prices.

These bodies are largely controlled by Congress and NCP politicians.

The 305 APMCs and 603 sub-markets have an annual turnover of Rs 37,094 crore with Navi Mumbai APMC accounting for a major chunk. Sources however, say the actual off-the-book turnover would be huge.

"We have dissolved around 170 APMCs. Some APMCs had completed their tenure, but had been given extension. They have been scrapped and administrator appointed. Those APMCs which have completed their tenure but had boards of administrators consisting of Congress/NCP) acolytes, will also be scrapped," said agriculture marketing minister Chandrakantdada Patil, who added that these boards of administrators had recruited people and had sold off shops.

"We will also inquire into irregularities... and take action against the guilty," said Patil, adding: "Just dissolving them (APMC boards) will not do. Horrible irregularities have been committed."

Former agriculture marketing minister and Congress leader Radhakrishna Vikhe Patil had, however, begun the process to exclude fruits, vegetables, condiments and processed items like pulses, dry fruits and edible oil from APMC ambit. If the reforms proposal, which had met with stiff resistance from NCP, which controls most of these markets, had been executed, farmers would have been able to sell directly to consumers bypassing intermediaries, thus reducing rates, ensuring remunerative prices for agriculturists and lowering wastage in the distribution chain.

Congress vice-president Rahul Gandhi too had asked Congress-ruled states to allow farmers to sell their produce to consumers bypassing APMCs to stem price rise.

Despite APMC Act being amended in 2006 to allow direct and private marketing, contract farming, public-private partnership (PPP) and single licence for the entire state, these reforms have been slow-starters. Maharashtra has just around 47 operational direct marketing licences with a turnover of around Rs 900 crore last year, and 20 private APMCs with a Rs 2,055.27 crore turnover.