The Maharashtra state government has waived the Agricultural Produce Market Committee (APMC) fees for two central agencies—National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) and the National Cooperative Consumers’ Federation of India (NCCF)—to facilitate onion procurement in the state. This waiver is designed to reduce transaction costs and ensure smoother procurement operations.
Details of the Fee Waiver
Under standard APMC norms, traders or buyers are required to pay a market fee of 0.75% on the total transaction value. For onion procurement, this translates to 75 paise for every Rs 100 worth of onions purchased. For example, a purchase worth Rs 1 lakh attracts a market fee of Rs 750. By waiving this fee, the state government aims to lower the financial burden on the procuring agencies and encourage efficient procurement.
Government Directive
In a communication to the state marketing department, the cooperation, marketing and textiles ministry directed the implementation of the decision. The communication stated, “Appropriate action should be taken to implement the exemption on onion procurement carried out under the price stabilisation fund (PSF) scheme through Nafed and NCCF.” This move follows directives issued after a review meeting chaired by Union Home and Cooperation Minister Amit Shah, which focused on addressing the challenges faced by onion farmers.
Background of the Decision
Under the PSF scheme, Nafed and NCCF have been tasked with procuring onions directly from farmers at APMCs across Maharashtra. The decision to waive fees was taken after a high-level meeting on May 27, attended by Chief Minister Devendra Fadnavis, Union Ministers Shivraj Singh Chouhan and Pralhad Joshi, Deputy Chief Ministers Eknath Shinde and Sunetra Pawar, along with senior officials. The meeting approved direct procurement through APMCs, prompting the state to waive market fees to support the process.
Current Status of Procurement
Despite the push, procurement at APMCs has not yet commenced. Nafed officials stated that they are awaiting formal clearance from the Union Consumer Affairs Ministry. “We have opened 18 procurement centres in Nashik district, where procurement will be undertaken through cooperative agencies. Procurement at the APMCs will begin once approvals are received,” officials said. Similarly, NCCF officials confirmed that groundwork has begun but key instructions are pending. “We have set up 11 procurement centres in the district and more are likely to be opened soon. However, we are yet to receive instructions from the head office or the Union Consumer Affairs Ministry regarding procurement directly at APMCs,” they added.
Urgency and Targets
The Union Consumer Affairs Ministry has set a June 30 deadline to procure 2 lakh tonnes of onions, with Nafed and NCCF assigned 1 lakh tonnes each. This adds urgency to operationalise procurement channels on the ground, ensuring that farmers benefit from the scheme and market prices remain stable.
