THE GIST of Editorial for UPSC Exams : 21 May 2020 (End of a monopoly (The Hindu))

End of a monopoly (The Hindu)

Mains Paper 3: Economy
Prelims level: APMC reforms
Mains level: Process to abolish the monopoly of agricultural produce market committee

Context:

• Agriculture is a state subject under the Constitution, but the Green Revolution wouldn’t have happened without the political leadership at the Centre in 1966 approving the import of 18,000 tonnes of seeds of high-yielding semi-dwarf wheat varieties from Mexico.
• The same goes for the Narendra Modi government’s decision now to enact a Central law to dismantle the monopoly of agricultural produce market committee (APMC) mandis in the wholesale trading of farm commodities.
• It’s all very well to say that “agriculture” and “markets and fairs” fall under the State List of the Seventh Schedule. However, state governments have done very little all these years to remove barriers to trade in farm produce.

Having the freedom:

• Farmers, like any businessmen, should have the freedom to sell their produce to anyone, anywhere and anytime. This, in turn, is also contingent upon processors, traders, retailers or exporters being able to buy directly from them.
• Unfortunately, most state APMC laws tod................................

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Anathema to the spirit of liberalisation:

• This arrangement is anathema to the spirit of liberalisation and also goes against Article 301 of the Constitution, which envisages freedom of trade and commerce “throughout the territory of India”.
• If states haven’t really freed agricultural ..................................

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Conclusion:

• The present government must make it clear that the objective behind its proposed law is not to dismantle APMCs.
• Farmers will continue to bring their produce to mandis that have good infrastructure and where they are likely to find more buyers. But that should be a matter of choice, both for farmers and buyers. APMC monopoly has to go.
• Initiative for APMC reforms should have come from states. But it is welcome that Centre is now taking the lead.

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Prelims Questions:

Q1.  With reference to the Micro, Small and Medium Enterprises (MSMEs), consider the following statements:
1. Definition of MSME will be revised by raising the Investment limit. An additional criteria of turnover also being introduced.
2. The distinction between manufacturing and service sector will be eliminated.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer:

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Mains Questions:
Q1.  What do you mean by the APMC reforms? .................................................