Private Market And Collection Center Was Set Up 15 Years Ago

Private market and collection center was set up 15 years ago in Maharashtra.

Even today the Congress is opposing the Farmers Produce Trade and Commerce (Promotion and Simplification) Act -2020 brought by the Central Government.

But it was only 15 years ago that it laid the foundation of the Private Market and Collection Center in Maharashtra.

In the year 2005-06, the then Chief Minister of the state, Vilasrao Deshmukh, approved the Direct Marketing License (DML) for the establishment of a private market and collection center.

Private markets are actually wholesale markets, founded by private entrepreneurs.

Big companies such as Big Basket and Reliance Fresh entered the operation of the collection center and the purchase of farmers’ products started from the farm itself.

It has been 15 years since the beginning of procurement of farmers’ produce by private traders outside the mandis.

Marketing Director gives license: State Government Marketing Director issues license to entrepreneurs to set up private market.

The condition is that there should be at least five acres of land for setting up this type of market.

Apart from this, it is also mandatory to have an auction hall, sheds, waiting room, and road for traffic. The cost of setting up this type of market is around Rs 4-5 crores.

18 markets, turnover of four thousand crores: So far 18 private markets have been established in Maharashtra. Among them, cotton, soybean and gram etc. are sold.

In some private markets, all types of grains as well as other agricultural products are also procured, while in some, special crops are purchased.

In the year 2019-20, 100.88 lakh quintal grains were procured in these 18 private markets, while a turnover of Rs 4,357.88 crore.

A guarantee of five lakh rupees was taken while taking a license for the establishment of a private market, but this rule was relaxed significantly when private companies stepped in.

1,100 licenses to FPC: The marketing director has issued about 1,100 DMLs to Farmer Producers Companies (FPC) in recent years.

They have been given large scale discounts, so that they can compete with the big corporate houses.

However, DML holders are a better option for the farmers, as they buy the produce from the field itself. Farmers get income on time, which helps them in meeting the needs of the family and preparing for the next crop.

Controller of Private Market Who: Through the Director of Marketing, the Government of Maharashtra controls the alternative markets traded in the state.

These private markets have to renew the license every year. The marketing director can take action against them for complaints of irregularity.

Their bank guarantee can also be forfeited. The DML holder has to pay 1.05 per cent of the cess to the Agricultural Market Produce Committee (APMC) in which he does business.

However, DML holders have been objecting to this. They say why pay cess when they do not get any kind of facility from APMC.

Farmers also benefited: After the new law was passed by the Center, the objection made by the DML holders itself has ended.

The FPC says that between September and October, they bought about 2,600 tonnes of soybeans from farmers for oil-trading companies, which cost more than Rs 10 crore.

This was not possible due to the provision of cess. While companies have benefited from this, farmers have also benefited.

Provision of MSP: Even though private markets in Maharashtra are making direct purchases from farmers.

They do not have the freedom to purchase grains below the minimum support price (MSP) announced by the government.

If found so, their license may also be canceled.

However, it also has adverse effects. When the price of food grains is low in the market, many DML holders stop buying from farmers, as they have to pay on MSP.