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Sell Shares India
Sell Shares India
As a leading online trading firm, SMC online offer you comprehensive commodities news, Indian commodities news, commodities market news analysis, and updates.
New Delhi,
Delhi,
India
(prbd.net)
28/09/2011
In a bid to bring food prices under control, SMC GLOBAL SECURITIES LTD has recommended to the government to take initiatives for introducing free trade in FOOD CROPS AMONG ALL SAARC COUNTRIES as also lower import duties and VAT on all food products to bare minimum as a short term policy measures .
In addition, the company has also suggested that insurance companies should be asked by the state to carve out different schemes to give insurance cover to farmers against their crop damage due to unseasonable rains, famine and pests hit since farmers lose out a great deal on these fronts almost every year as another short term policy prescription.
SMC GLOBAL SECURITIERS LTD is also of the firm view that menace of inflation could be better combated provided contract farming is introduced without any further delay for which essential perquisite would be to either scrap or sufficiently amend the Agricultural Produce Market Committee Act (APMC, passed way back in 1954.
This act forces farmers to take their produce to market yard and sell it through middlemen. As a result the farmer gets Rs 5 a kg for onions while consumer pays close to Rs 30 for it in present context , said Chairman and Managing Director of SMC Global Securities Ltd Mr Subhash C Aggarwal in a statement issued here today.
‘’As a short term solution to bring down food prices, the practically possible way out would be to introduce free trade in food crops among all SAARC nations since it will facilitate release of supplies of food products that fall in shortages in one area and vice versa, besides strengthening and cementing their mutual economic and political relations”, explained Mr Aggarwal .
Another short term policy measures to subside food inflation could be through lowering import duties on all food products to bare minimum since it would not put much pressure on national exchequer and substantially curtail value added tax on such articles, explained SMC chief.
An early decision to reform APMC Act will not only bring down inflation but also enhance share of farmers in final price paid by consumers in many agriculture and horticulture products to about 60 per cent from present level of close to 30 per cent, reveals findings of SMC Global Securities Ltd . Close to 60 per cent of horticulture and agriculture produce, especially of perishable commodities is wasted presently in the absence of proper logistics in India, highlights the SMC Global Securities Ltd.
Mr Agarwal also stated that APMC Act ought to amended in manner so that private sector is encouraged to develop specialized markets for fruit and vegetables by which farmers are offered more marketing options to sell their produce.
This act also restricts Indian farmers to sell their agricultural produce from one notified area to another and authorizes state governments to regulate wholesale agriculture markets. As a result, the altruistic purpose of the act of ensuring that farmers get a fair price for their farm produce and protection from exploitation by traders is completely defeated.
Vast majority of provisions of the act are distorted by vested interests to encourage LICENCE RAJ in farm marketing ever since it came into being and neither benefited farmers nor end consumers. In modern times when trade barriers are being overcome through free trade agreements and capital is turning without color, Indian farmers have yet to be allowed to move their farm produce from one notified area and district to another due to provisions of APMC Act makes absolutely no sense, felt SMC Chief.
There are also multiple levies and taxes charged by different APMC and each state has its own set of rules and regulations governing the various APMC’s thereby creating lot of disequilibrium in the prices at different places.
As a leading online trading firm, SMC online offer you comprehensive commodities news, Indian commodities news, commodities market news analysis, and updates.
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