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Hot Deal Sale of pulses, cereals deregulated to benefit farmers

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Sale of pulses, cereals deregulated to benefit farmers

Sale of pulses, cereals deregulated to benefit farmers

The government will amend the six-and-a-half-decade old Essential Commodities Act to deregulate food items, including cereals, edible oil, oilseeds, pulses, onion and potato, Finance Minister Nirmala Sitharaman said on Friday.

https://www.rediff.com/business/report/sale-of-...

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Deregulation to benefit farmers? Since when?? Lol.. rolleyes

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deb3l wrote:

Deregulation to benefit farmers? Since when?? Lol.. rolleyes

what benefit will this deregulation give

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deb3l wrote:

Deregulation to benefit farmers? Since when?? Lol.. rolleyes

Govt always had the first right to buy all these stuff and the private agencies always had to buy from the govt. So the farmers always had to take their produce to APMCs and other such places to sell. So it was totally not free market pricing and the brokers always decided the price. At least now after deregulation the private agencies have a choice to setup their own purchase stations. Now for eg Bigbasket can purchase all this from the farmers directly without having to buy from the govt agencies. But then again it all depends on how this is implemented as even private agencies try to work for a cheaper price.

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desiman wrote:

what benefit will this deregulation give

The question should be “whom” than “what”. And the answer is known to all.

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rsai01 wrote:

Govt always had the first right to buy all these stuff and the private agencies always had to buy from the govt. So the farmers always had to take their produce to APMCs and other such places to sell. So it was totally not free market pricing and the brokers always decided the price. At least now after deregulation the private agencies have a choice to setup their own purchase stations. Now for eg Bigbasket can purchase all this from the farmers directly without having to buy from the govt agencies. But then again it all depends on how this is implemented as even private agencies try to work for a cheaper price.

//At least now after deregulation the private agencies have a choice to setup their own purchase stations.//

…to play the role of a broker?? Great time to milk the situation!

But, the question still remains.. shall they be allowed to do so? Let’s wait N  watch.. we’ll discuss this later on if this happens.

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rsai01 wrote:

Govt always had the first right to buy all these stuff and the private agencies always had to buy from the govt. So the farmers always had to take their produce to APMCs and other such places to sell. So it was totally not free market pricing and the brokers always decided the price. At least now after deregulation the private agencies have a choice to setup their own purchase stations. Now for eg Bigbasket can purchase all this from the farmers directly without having to buy from the govt agencies. But then again it all depends on how this is implemented as even private agencies try to work for a cheaper price.

Not fear mongering, but this reminds me of something i read about how the likes of Walmart is literally controlling all the agricultural produce in the US

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deb3l wrote:

//At least now after deregulation the private agencies have a choice to setup their own purchase stations.//

…to play the role of a broker?? Great time to milk the situation!

But, the question still remains.. shall they be allowed to do so? Let’s wait N  watch.. we’ll discuss this later on if this happens.

You only had one broker and now you will have multiple brokers. If you don’t like amazon go to Big basket, if they are too smart go to Big bazaar. The deregulation of those food items means removal of that particular act which stopped private players from having the first right. That deregulation for sure will happen as the FM said.

But if all these private players are Adani, Ambani (reliance retail), Patanjali then it would be just another deals the F..ing govts do to benefit their sponsors. But surely the farmers have a choice now to form their own associations and strike deals which was not easy with the current APMC act. Farmers should really stop trusting the lying govts and do something on their own. They have always been played/lied to sadly and they still fail to realise it.

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another blunder in making. they obviously didn’t think it through

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dev007 wrote:

Not fear mongering, but this reminds me of something i read about how the likes of Walmart is literally controlling all the agricultural produce in the US

It is not fear mongering, its very much a harsh truth. They should take care of this too and seriously hope they do.

Also read about how Monsanto which is a seed seller prosecutes farmers in US if they save seeds for the next season.

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rsai01 wrote:

You only had one broker and now you will have multiple brokers. If you don’t like amazon go to Big basket, if they are too smart go to Big bazaar. The deregulation of those food items means removal of that particular act which stopped private players from having the first right. That deregulation for sure will happen as the FM said.

But if all these private players are Adani, Ambani (reliance retail), Patanjali then it would be just another deals the F..ing govts do to benefit their sponsors. But surely the farmers have a choice now to form their own associations and strike deals which was not easy with the current APMC act. Farmers should really stop trusting the lying govts and do something on their own. They have always been played/lied to sadly and they still fail to realise it.

//Farmers should really stop trusting the lying govts and do something on their own. They have always been played/lied to sadly and they still fail to realise it.//

All agreed to THIS and (hopefully) been waiting for this since looooonnng.. triumph

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It will be as beneficial as Petrol and Diesel deregulation has been for consumers.

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deb3l wrote:

Deregulation to benefit farmers? Since when?? Lol.. rolleyes

Regulations and protectionism can severely restrict the natural rate of growth in any economy. 1991 was the turning point for India in terms of market freedom, the reforms back then were not driven based on usual welfare policies of that time but were rather forced into policymakers conscience through some unfortunate circumstances – most of which were the result of severe fund crunch.

Today, we celebrate those reforms and the individuals who made it possible. grinning

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Praashaant wrote:

Regulations and protectionism can severely restrict the natural rate of growth in any economy. 1991 was the turning point for India in terms of market freedom, the reforms back then were not driven based on usual welfare policies of that time but were rather forced into policymakers conscience through some unfortunate circumstances – most of which were the result of severe fund crunch.

Today, we celebrate those reforms and the individuals who made it possible. grinning

So it sums up to.. “we are just crash coursing our predecessors”.. joy joy

What’s the big deal? Lol.. sweat_smile

#Atmanirbhar bano.. copy cat nahin..

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Yeh sab kuchh Jio-WhatsApp ke liye to nahi ho reha… sad toungueout

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vijkap201 wrote:

Yeh sab kuchh Jio-WhatsApp ke liye to nahi ho reha… sad toungueout

Mukesh Ambani had once said that he has a dream to sell everything from a pin to an aeroplane under his name in India. Seems his dream is coming true stuck_out_tongue

Sometimes I feel he is the most powerful man in India and Mr. PM is his pawn wink pensive

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rsai01 wrote:

Mukesh Ambani had once said that he has a dream to sell everything from a pin to an aeroplane under his name in India. Seems his dream is coming true stuck_out_tongue

Sometimes I feel he is the most powerful man in India and Mr. PM is his pawn wink pensive

Everyone in that chair will be his p.a.w.n… who has got no conscience left with him/her/it-self (imagining machines to take over soon stuck_out_tongue)

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ELI5?

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deb3l wrote:

So it sums up to.. “we are just crash coursing our predecessors”.. joy joy

What’s the big deal? Lol.. sweat_smile

#Atmanirbhar bano.. copy cat nahin..

You seriously need to refine your comprehension skills if this is what you made out from my reply. unamused

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Praashaant wrote:

You seriously need to refine your comprehension skills if this is what you made out from my reply. unamused

Well.. thx for your suggestions! sunglasses 

FYI: ad-hominem begets ad-hominem.. expressionless

Enjoy the time while you have it.. lol.

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rsai01 wrote:

Govt always had the first right to buy all these stuff and the private agencies always had to buy from the govt. So the farmers always had to take their produce to APMCs and other such places to sell. So it was totally not free market pricing and the brokers always decided the price. At least now after deregulation the private agencies have a choice to setup their own purchase stations. Now for eg Bigbasket can purchase all this from the farmers directly without having to buy from the govt agencies. But then again it all depends on how this is implemented as even private agencies try to work for a cheaper price.

Who told you this? Have you been at any APMC or bought all these in different regions? I am talking about fruits and veggies.
Farmers were never forced to take their produce to APMCs. No way!
Brokers don’t decide the price, it’s always demand and supply which decides the price.

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deb3l wrote:

Deregulation to benefit farmers? Since when?? Lol.. rolleyes

joy joy joy
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GoogleCA wrote:

Who told you this? Have you been at any APMC or bought all these in different regions? I am talking about fruits and veggies.
Farmers were never forced to take their produce to APMCs. No way!
Brokers don’t decide the price, it’s always demand and supply which decides the price.

I am talking about the stuff which are being deregulated not fruits and veggies.

Yes farmers were never forced to take the produce to APMCs but at the same time bulk purchases always happened in APMC yards. Also private purchasers were not allowed to buy produce from the farmers directly (if you want you can read the APMC act) so the farmers obviously had to take it to the APMC

The price discovery mechanism in the APMC was always supposed to be through auction (which was the original intention of the act to discover price based on demand and supply). But the trader-broker nexus always exists and they would easily manipulate the prices.

PS- This might be different for different states and I am talking about how it works in Karnataka. One of the references to govt of karnataka enactment

The state government of Karnataka has created APMCs in many towns to enable farmers to sell their produce at reasonable prices. Most APMCs have a market where traders and other marketing agents are provided stalls and shops to purchase agriculture produce from farmers. Farmers can sell their produce to agents or traders under the supervision of the APMC.

Farmers cannot sell produce outside the APMC mechanism. However, the government is now encouraging direct selling through ‘Rythu Bazar’ or to supermarkets directly. The present APMC system makes farmers vulnerable to traders’ and marketing agents’ price manipulations

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rsai01 wrote:

I am talking about the stuff which are being deregulated not fruits and veggies.

Yes farmers were never forced to take the produce to APMCs but at the same time bulk purchases always happened in APMC yards. Also private purchasers were not allowed to buy produce from the farmers directly (if you want you can read the APMC act) so the farmers obviously had to take it to the APMC

The price discovery mechanism in the APMC was always supposed to be through auction (which was the original intention of the act to discover price based on demand and supply). But the trader-broker nexus always exists and they would easily manipulate the prices.

PS- This might be different for different states and I am talking about how it works in Karnataka. One of the references to govt of karnataka enactment

The state government of Karnataka has created APMCs in many towns to enable farmers to sell their produce at reasonable prices. Most APMCs have a market where traders and other marketing agents are provided stalls and shops to purchase agriculture produce from farmers. Farmers can sell their produce to agents or traders under the supervision of the APMC.

Farmers cannot sell produce outside the APMC mechanism. However, the government is now encouraging direct selling through ‘Rythu Bazar’ or to supermarkets directly. The present APMC system makes farmers vulnerable to traders’ and marketing agents’ price manipulations

Whatever you have wrote above is purely theoretical. Practically farmers are selling directly & taking their produce to APMCs as well, it’s their choice practically. Do you think in this day and age it is possible to manipulate prices? No way! Farmer also has a phone, no? They also have their own cooperatives (group of farmers). They first get price details from atleast 4 different APMCs on Phone and then decide whether they want to sell directly or take it to the nearest APMC or the far away APMC. I am closely linked to APMCs because my family businesses is related to this. I am not saying this because our business might get hit due to this but because there’s no information in the market so people believe whatever little information they get. Also you wrote that govt had the first right to buy produce, if it was so then how did trader – broker nexus could manipulate the prices?

Open for discussion.

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deb3l wrote:

//At least now after deregulation the private agencies have a choice to setup their own purchase stations.//

…to play the role of a broker?? Great time to milk the situation!

But, the question still remains.. shall they be allowed to do so? Let’s wait N  watch.. we’ll discuss this later on if this happens.

In the end, middle class wala hi bakra banega

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GoogleCA wrote:

Whatever you have wrote above is purely theoretical. Practically farmers are selling directly & taking their produce to APMCs as well, it’s their choice practically. Do you think in this day and age it is possible to manipulate prices? No way! Farmer also has a phone, no? They also have their own cooperatives (group of farmers). They first get price details from atleast 4 different APMCs on Phone and then decide whether they want to sell directly or take it to the nearest APMC or the far away APMC. I am closely linked to APMCs because my family businesses is related to this. I am not saying this because our business might get hit due to this but because there’s no information in the market so people believe whatever little information they get. Also you wrote that govt had the first right to buy produce, if it was so then how did trader – broker nexus could manipulate the prices?

Open for discussion.

It is not theoretical and is a wide spread practice here in Karnataka. What you say might be applicable to a produce which are not grown in bulk (even here the fruits and vegetables are sold as they want and even directly). Most farmers growing Ragi, rice and pulses in our districts mostly take them to APMCs (of course a small percentage of it is sold directly). But tons of the cereals and pulses are always taken to APMC because no private buyer has that sort of capacity (they are not allowed to have that capacity). So selling directly is a very meager percentage and this deregulation aims to provide legal authority to private buyers in terms of bulk capacity building. Just give me one example of a private organisation in India who is authorized to buy in bulk.

Also this technological advancement is very recent (say 5-6 years) and even now in the hinterlands not everyone is well informed about it. When the farmers are smart enough to know the price in diff APMCs, the brokers also would make sure to bring parity (it happens in ours and surrounding districts). Some farmers are smart enough to store, enquire and sell for the right price. But most farmers want to sell their produce asap due to lack of knowledge and storage facilities. If it happened so “practically” as you said our farmers wouldn’t be struggling now.

Govt having the first right to buy and trader-broker nexus are 2 separate things. Govt having the first right to buy is a legislation part of the act I was just referring to and has no relevance to cheating middle men (first right gives them the power to pay support prices without any legal complications). The impact of trader-broker nexus has been widely discussed and many experts have always forced the govt to remove these middle men. Just google for “apmc brokers cheating farmers” and you will find 100s of articles about this. It has been always understood that the farmers only get 1/3rd to 1/4th of the retail prices. The first ones to resist such transparency and free market acts would be these registered brokers.

This year MSP of Ragi was 2300 (but limited to 20 quintals per farmer) in our district and the DC office would make arrangements to buy this. If a farmer had more to sell he had to approach other private registered traders and everyone quoted anywhere between 1700-1800. They knew that these are all left overs from the govt purchase and they can’t take this produce anywhere else. Obviously the govt won’t interfere in this purchase so the traders get a free hand and there was no one to buy this ragi in bulk outside of the APMC yard. The same ragi is sold in the shops at around Rs.3500 for the same 100 kgs (well there would be lots of over head costs involved but 70-80% extra is a lot).

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rsai01 wrote:

It is not theoretical and is a wide spread practice here in Karnataka. What you say might be applicable to a produce which are not grown in bulk (even here the fruits and vegetables are sold as they want and even directly). Most farmers growing Ragi, rice and pulses in our districts mostly take them to APMCs (of course a small percentage of it is sold directly). But tons of the cereals and pulses are always taken to APMC because no private buyer has that sort of capacity (they are not allowed to have that capacity). So selling directly is a very meager percentage and this deregulation aims to provide legal authority to private buyers in terms of bulk capacity building. Just give me one example of a private organisation in India who is authorized to buy in bulk.

Also this technological advancement is very recent (say 5-6 years) and even now in the hinterlands not everyone is well informed about it. When the farmers are smart enough to know the price in diff APMCs, the brokers also would make sure to bring parity (it happens in ours and surrounding districts). Some farmers are smart enough to store, enquire and sell for the right price. But most farmers want to sell their produce asap due to lack of knowledge and storage facilities. If it happened so “practically” as you said our farmers wouldn’t be struggling now.

Govt having the first right to buy and trader-broker nexus are 2 separate things. Govt having the first right to buy is a legislation part of the act I was just referring to and has no relevance to cheating middle men (first right gives them the power to pay support prices without any legal complications). The impact of trader-broker nexus has been widely discussed and many experts have always forced the govt to remove these middle men. Just google for “apmc brokers cheating farmers” and you will find 100s of articles about this. It has been always understood that the farmers only get 1/3rd to 1/4th of the retail prices. The first ones to resist such transparency and free market acts would be these registered brokers.

This year MSP of Ragi was 2300 (but limited to 20 quintals per farmer) in our district and the DC office would make arrangements to buy this. If a farmer had more to sell he had to approach other private registered traders and everyone quoted anywhere between 1700-1800. They knew that these are all left overs from the govt purchase and they can’t take this produce anywhere else. Obviously the govt won’t interfere in this purchase so the traders get a free hand and there was no one to buy this ragi in bulk outside of the APMC yard. The same ragi is sold in the shops at around Rs.3500 for the same 100 kgs (well there would be lots of over head costs involved but 70-80% extra is a lot).

Would have been better if you had used googled urself rather than suggesting me to do it.
https://harilaxmienterprises.tradeindia.com/pro...

https://m.indiamart.com/proddetail/wheat-flakes...

https://m.indiamart.com/proddetail/granola-cere...

I have also audited books of manufacturers of products like oats, muesli and similar food products. The procurement is from private players and not from any government agency. It was already happening, it’s just that the government had to announce something so let’s announce this. Before you come with the logic that these private players are brokers-traders then what makes you believe that this won’t happen with new players coming?

Farmers are smart enough to know the price difference. Agree or not its upto you. Even the marginal farmers are smart enough

Why are farmers struggling. There are multiple issues. You can’t pin point the same to APMCs.

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The main reasons why farmers struggle are:
1. Weather
2. Not chosing right crop to grow.
3. Using old equipments for harvesting

From start to end you are pointing everything on APMCs. Do you think that APMCs are responsible even for this?

Regarding Ragi – All products have different grades. The Ragi which couldn’t be procured by Govt is A Grade? Tell me honestly. The first one to buy would always buy the A Grade material. It’s human tendency. A Grade & B Grade prices should be same? As i said my family business is related to APMCs. We know how smart farmers are. I am not accusing them because i know they suffer a lot but a coin has 2 sides. You can’t look at one side of the coin and make your thesis.

I am not at all saying that do not build storage. Build storage. Create Infrastructure but do not pick APMCs for your false accusations.

If you were to invest 5 Crore how much would you want to earn without doing anything?

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GoogleCA wrote:

Would have been better if you had used googled urself rather than suggesting me to do it.
https://harilaxmienterprises.tradeindia.com/pro...

https://m.indiamart.com/proddetail/wheat-flakes...

https://m.indiamart.com/proddetail/granola-cere...

I have also audited books of manufacturers of products like oats, muesli and similar food products. The procurement is from private players and not from any government agency. It was already happening, it’s just that the government had to announce something so let’s announce this. Before you come with the logic that these private players are brokers-traders then what makes you believe that this won’t happen with new players coming?

Farmers are smart enough to know the price difference. Agree or not its upto you. Even the marginal farmers are smart enough

Why are farmers struggling. There are multiple issues. You can’t pin point the same to APMCs.

Hope you realise that those traders will have APMC registration too (also those links are of sellers). They are not different from any other APMC registered traders. When a big chain like Metro cash and carry has to have APMC registration no one else is allowed to do that without an APMC registration.

Again you are speaking something not related. When did I ever say that all of the produce is mandatorily acquired by the govt? Obviously your manufacturers would have procured from other APMC registered players or their subsidiaries.

If you can go back and read a comment, I have also said about this situation being the same or even worse if a proper legislation is not worked out. Private players always work for their profit but now at least there would be multiple private players and there is no entry barrier in the way of APMC registration.

Yes as I said not all farmers are smart enough because I have seen it personally (anyway it’s your word against mine so both can be wrong or right). Even if they have a way of knowing the price difference, the traders also have a way of minimizing it as they would be the ones to have the first information in this regard.

Yes there are many issues but they are not getting the right price is the biggest issue. Majority of their issues are because of them not getting the right remuneration for their produce. Many keep advising the govt that Input availability issues are being taken care of in a good way but the remuneration redressal is what is lacking. As you know to google very well try googling “Apmc brokers cheating farmers” (not to say this only happens there but it can happen everywhere but APMCs which were built to help farmers are not doing it right because of middlemen).

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