After eNAM, next target for Modi should be APMC’s

Read Food Inflation Will Remain Unless The Politicians Running APMCs Are Removed

Modi Government has instituted eNAM (e National Agriculture Market), an IT enabled market on the internet to make it easier for farmers to sell their produce directly to end Retailers, bypassing the many middlemen, who control the APMC’s (Agricultural Produce Market Committee) and are largely responsible for massive hike in food prices when they hit the cities. This internet platform has taken off, but the APMC’s themselves have many parties interested in status quo so that they earn their crores. What is the way out now?

APMC

APMC

Politicians have vested relations with these APMC’s – Look at Sharad Pawar. Its been eons since he has been winning elections on back of his control over Sugar producing cooperatives. His 10 years as agriculture minister in UPA led to the worst shape of agriculture sector. Food inflation hit the roof but the most farmer suicides were witnessed in same areas which Pawar goons control.

Super corrupt Sharad Pawar

Super corrupt Sharad Pawar

Way forward as rightly suggested in the article – Remove the politicians running APMC’s, who have deep connections to political parties. Most of these APMC’s are controlled by dynasty parties, like Congress, NCP, SP, DMK, NC, SAD.

Another way for reducing the link between politicians and agriculture, is to institute Income Tax on agricultural income above Rs. 1 crore per annum. Most politicians from opposition parties, show their income as agricultural income, to evade tax. These pseudo “Farmers” need to be checked. By taxing agricultural income only above Rs. 1 crore, it would be ensured that this corruption is checked. Also, Rs. 1 crore is a huge amount, which would leave out the poor farmer from the tax net.

Author: Tushar Kansal

Tushar has been associated with the Project Assessment, Fund-raising & Financial Advisory realm in India for 2 decades. He has straddled multiple roles in Financial Advisory in Deloitte Touche Tohmatsu, PE Deal-maker in Times of India’s Brand Capital, in Corporate Finance roles in Aircel, as an Entrepreneur in Education field and as a CFO (Chief Financial Officer) till 2014. Prior to that, he was the Head of Debt for MTS India, where he was instrumental in raising $2.5 billion structured debt. Tushar has been involved in $6 Billion of transactions in Debt/ PE/ M&A across all asset classes. He has major experience in Education domain – From 2001 to 2006, Tushar led his Education entrepreneurship venture which provided Entrance examination training for Engineering colleges in India. The venture grew to 800 students and then was bought out by a marquee pan-India player in this space, as a strategic sale. Tushar is a panel member at CNN-News18. He is also a Columnist @ Business World, Indian Defence News, Business & Economy, Indian Economist, Digital Market Asia, OpIndia & Growing India.

Share This Post On

1 Comment

  1. Sir why the income of farmers be exempted if they earn crores, also why similar rules apply as a common man?

    Post a Reply

Submit a Comment

Your email address will not be published. Required fields are marked *