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A Confederation of Indian Industry (CII) has recommended
that southern states implement the Agriculture Produce
Market Committee (APMC) Act to free the farmer from state
controls on movement, storage, and marketing of agricultural
commodities. They also encouraged that the states establish
a commodity exchange to facilitate futures trading of
agricultural produce. The five southern states have been
reducing their investments in agriculture as a percentage of
their total budget: Andhra Pradesh 4.6%, Karnataka 4.8%,
Kerala 5.1%, Tamil Nadu 7.5%, and Pondicherry 10.2%. The CII
also recommended that the states invite private sector to
own and operate wholesale distribution centers and
encouraged changes to town planning laws to allow a more
modern distribution network, The APMC allows farmers to sell
their produce contractually to corporations and also do not
have to go through convoluted processes to sell their goods.
They also asked for simplification of taxes such as the
creation of a common value-added tax structure on a uniform
and rationalized minimum pricing and the abolition of a "mandi"
tax (market tax) that diminishes competitive advantage. The
CII believes that these simple changes will increase the
state GDPs substantially.
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