Tuesday, February 1, 2011

Inflation is often by product of The State actions

Mr Raj Jain writes
  • Ironically, high commodity prices do not benefit the producers — the farmers — because of outdated Agricultural Produce Marketing Committee (APMC) laws. The APMC Act stipulates that farmers can only sell their produce to licensed commission agents. The Act perpetuates the monopoly of around 4,000 traders across the country. These traders, often with strong local political clout, further sell the farmers’ produce to shopkeepers, after which it reaches the consumer at inflated prices. 

However, his suggestion on “Farmers should be educated on best agricultural practices” is absurd on many grounds.

I have my own experiences in going to Marketing Committee back to my home town. It is the organized criminal practices being allowed to exist in this republic. I have seen (for many years) farmers who received payments after several months after selling their goods through the Marketing Committee. Even many traders operate with or without licenses by paying bribes to the authority whose role is to implement this nanny law called APMC Act.

One has to listen to these farmers who often come through the potholes of no roads in villages.

The best way is to create competitive environment in trading with farmers, provided there should be a around the clock of Lifeline for addressing complains of farmers. There is nothing exist at present. Even if you want to make a complaint you have to travel several miles to make a one. The telecom revolution is yet to create any good news to these aspects.  

One has to ponder how massive shifts taken place in the input costs for farming. Often the big industries receive subsidies in the name of farmers and their community.

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