Haryana government on Saturday said it will not allow private companies to set up market yards as an alternate marketing channel to farmers, saying that the state has already well-developed market infrastructure.
"It is difficult to allow private players to set up market yards in the state (Haryana) as per Centre’s model APMC Act. Because we have already spent a lot on creating our (marketing) infrastructure and we have best of roads network, grain markets (to take care of marketing requirements)," Haryana agriculture minister Paramvir Singh said on the sidelines of CII Agrotech.
"The private markets can be allowed in those states where marketing infrastructure is not well developed," he asserted.
The Union government had suggested states to amend their respective APMC Acts to allow private markets, direct procurement of produce and contract farming on the lines of model Agricultural Produce Markets Act (APMC) 2003.
The main intention of allowing private yards is to allow farmers to have access to alternate marketing channel to fetch remunerative returns.
Haryana government also does not want entry of private players in marketing of foodgrain produce because feels it is difficult to regulate private market yards.
"The farmers’ interest is better protected in state owned market yards," official sources said in Chandigarh.
Haryana has about 520 grain markets including purchase centres.
Another reason for not encouraging private players is that Haryana government earns almost Rs. 1,000 crore as market fee and rural development fund, sources said.
However, in the neighbouring state Punjab, state owned Punjab State Agricultural Marketing Board, which controls marketing network, has already proposed to allow private companies to set up market yards in the state by amending APMC Act.