MARKET DEVELOPMENT
Karnataka Clears 2 Bills - Agri Produce Marketing, Regulation of Oil Palm
Karnataka Clears 2 Bills - Agri Produce Marketing, Regulation of Oil Palm
19/08/2013 (fnbnews.com) - Karnataka government recently passed two landmark bills. One is the State Agricultural Produce Marketing (Regulation and Development) (Second Amendment) Bill, 2013, which envisages introduction of warehouse-based sales and single unified licence to traders. The second is the Bill to provide for the Regulation of Cultivation, Production and Processing of Oil Palm.
Minister for agricultural marketing and horticulture Shamanur Shivashankarappa introduced the Bill and said it planned to introduce market reforms in the agricultural marketing sector by initiation of warehouse-based sales, single unified licence to traders and improved marketing access. It said no market fee would be levied on flowers, fruits and vegetables and the marketing committee would collect user charge from buyers of the produce at such rates specified in the bye-laws approved by the director of agriculture marketing.
The Bill envisaged that the director of agriculture marketing would issue trader licences to operate as trader in any of the APMC yards and private market yards in the state. The existing licensee should obtain a fresh trade licence within a period of six months from the date of commencement of the Karnataka Agricultural Produce Marketing (Regulation and Development) (Second Amendment) Act, 2013.
The Bill looks for the creation of a direct purchase centre to buy notified agricultural produce directly from an agriculturist. It also proposed to set up a registering authority for addressing disputes arising out of contract farming. It would resolve the dispute within 30 days from the date of reference of dispute by giving the parties a reasonable opportunity of being heard.
The other benefits of the Bill were that it would eliminate the role of middlemen in APMCs and allow traders to sell produce in any market in the state. The Bill to regulate the cultivation, production and processing of oil palm was provided for constitution of a price fixation committee, among other things.
According to Shivashankarappa, the Karnataka Oil Palm (Regulation of Cultivation, Production and Processing) Bill, 2013, there was need for coordination between the grower and processor of oil palm.
The agriculture minister said that because fresh fruit bunches of oil palm have to be processed within 24 hours of plucking to extract oil, a close coordination between the grower and processor was necessary. Now the Bill assures the grower sale of his produce and payment for sale. There is also constitution of a project management team to ensure measures are put in place to develop oil palm cultivation and a price fixation committee to ensure the grower receives the reasonable price for oil palm fresh fruit bunches.
It also provides for appointment of oil palm commissioner to coordinate activities of oil palm growers and the industries engaged in processing oil palm, and declaration of factory zone for the purpose of ensuring regular supply of fresh oil palm fruit bunches to the factory situated in the zone.
In addition to registration of oil palm growers, the Bill provides for payment of compensation to oil palm growers by entrepreneurs on account of failure to buy oil palm fresh fruit bunches by the entrepreneur or occupier of factory.
It was noted that in order to meet the growing demand for edible oils, oil palm was identified as a suitable crop for cultivation in the country in view of its high oil yielding capacity.
Minister for agricultural marketing and horticulture Shamanur Shivashankarappa introduced the Bill and said it planned to introduce market reforms in the agricultural marketing sector by initiation of warehouse-based sales, single unified licence to traders and improved marketing access. It said no market fee would be levied on flowers, fruits and vegetables and the marketing committee would collect user charge from buyers of the produce at such rates specified in the bye-laws approved by the director of agriculture marketing.
The Bill envisaged that the director of agriculture marketing would issue trader licences to operate as trader in any of the APMC yards and private market yards in the state. The existing licensee should obtain a fresh trade licence within a period of six months from the date of commencement of the Karnataka Agricultural Produce Marketing (Regulation and Development) (Second Amendment) Act, 2013.
The Bill looks for the creation of a direct purchase centre to buy notified agricultural produce directly from an agriculturist. It also proposed to set up a registering authority for addressing disputes arising out of contract farming. It would resolve the dispute within 30 days from the date of reference of dispute by giving the parties a reasonable opportunity of being heard.
The other benefits of the Bill were that it would eliminate the role of middlemen in APMCs and allow traders to sell produce in any market in the state. The Bill to regulate the cultivation, production and processing of oil palm was provided for constitution of a price fixation committee, among other things.
According to Shivashankarappa, the Karnataka Oil Palm (Regulation of Cultivation, Production and Processing) Bill, 2013, there was need for coordination between the grower and processor of oil palm.
The agriculture minister said that because fresh fruit bunches of oil palm have to be processed within 24 hours of plucking to extract oil, a close coordination between the grower and processor was necessary. Now the Bill assures the grower sale of his produce and payment for sale. There is also constitution of a project management team to ensure measures are put in place to develop oil palm cultivation and a price fixation committee to ensure the grower receives the reasonable price for oil palm fresh fruit bunches.
It also provides for appointment of oil palm commissioner to coordinate activities of oil palm growers and the industries engaged in processing oil palm, and declaration of factory zone for the purpose of ensuring regular supply of fresh oil palm fruit bunches to the factory situated in the zone.
In addition to registration of oil palm growers, the Bill provides for payment of compensation to oil palm growers by entrepreneurs on account of failure to buy oil palm fresh fruit bunches by the entrepreneur or occupier of factory.
It was noted that in order to meet the growing demand for edible oils, oil palm was identified as a suitable crop for cultivation in the country in view of its high oil yielding capacity.