CM Working Group suggests agri market reform to control price rise

Some of the major recommendations were liberalisation of agriculture markets for improving the efficiency of distribution channel from farms to consumer,increasing participation of organised sector/ cooperatives in retailing including farmers markets,agro-processing,storage and cold chains for wastage control and proactive monetary policy,said a communique released by the Gujarat government. The report called for speedy reforms of Agricultural Produce Market Committees Act across different states along with time-bound development of agri-marketing infrastructure. Calling for a 10-year perspective plan to improve agri-infrastructure of backward and forward linkages for agriculture production and marketing,the report suggested providing priority sector lending to agri-marketing activities.

One of the suggestions was restructuring the Food Corporation of India by unbundling its operations in three separate divisions of procurement,storage and distribution, said Food Minister K V Thomas,who was present when the report was submitted to the PM.

The report also recommended keeping essential commodities out of futures for the time being,given the lack of strong linkages between spot and future markets at present.

The Group was set up by the PM in April last year at the height of price rise and was asked to suggest measures to tackle the huge disparity between wholesale and retail prices. The group comprised Andhra Pradesh,Tamil Nadu and Maharashtra CMs,who recommended strengthening of penal provisions against black marketing and hoarding and setting up of a price stabilisation fund by the Centre.