The state government of Tamil Nadu has promulgated an ordinance to amend the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987 allowing the farmers to now sell their produce at any private market recognized within the state to get the best price.
The farmers can now sell their produce to in regulated markets near to them, recognized private markets, choose to in recognized warehouses, in cold storages, or even market directly to recognized traders said the official press release.
A government official said that as per the new amendment a farmer now has the right to sell his farm produce to any licensed private market, cold storages, and godowns.
The official press release also added marketing charges should not be imposed on the farmers.
Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987 provides regulation related to buying and selling farmers' agriculture produce and proper management of markets. The new amendment says it was felt that now it is necessary to allow for restriction-free trade in the state.
Tamil Nadu is the also first Indian state to pass a law promoting contract tracing called Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act. This law allows farmers to tie up with private entities and decide the rate of the crop and quantity to produce before cultivation. The central government's new law on contract farming will be a replica of this countrywide.
State government’s official gazette notification said, “giving freedom to agriculturists to sell their products across time and space, to enhance transparency in trade options and to promote the emergence of multiple channels to competitive marketing”.
This decision by the state is to bring investment developments of markets and its infrastructure across the state.
According to the amendment any person is now allowed to get a license to set up private markets across the state for trading the produce, for 3 years.
Additionally, this ordinance will allow the opening of sub-yards in the form of warehouses and cold storage facilities. A person can set up facilities with ample infrastructure to store the produce in the proximity of the production site.
