As SC stays implementation of farm laws, FPCs fear setback in business

However, the Supreme Court stayed the implementation of the three laws earlier this week and set up a four-member committee to study the same. The stay effectively means that APMCs can now levy cess on trade carried out in their area of operation, even if the transaction was carried out outside the four walls of the APMCs. FPCs in Maharashtra are licensed by the state government to carry out trade outside the APMCs, but they are expected to pay cess to the market committees which ranges from 1-1.-5 percent of the transaction.

The Mumbai APMC, on Wednesday, issued a notice declaring its intent of charging cess on outside-mandi trade. The notice issued by the secretary of the market said that since the laws have been stayed, they are now entitled to levy cess on any trade in their area of operation. Satish Soni, state director of marketing, said that he is awaiting directions from the state government to take further action.

According to Thorat, when they had started their out-of-mandi business last year, various FPCs in Hingoli and Nanded were issued notices by the APMCs. “The notices had asked the FPCs to obtain licenses from them and pay cess for the transactions carried out. Back then, we had written to them, asking how the Central law supersedes the state laws and thus, we were exempted from paying cess. However, with the Supreme Court now staying the laws, the FPCs fear similar action to start again,” he said.

“The stay is certainly a step back for FPCs, many of whom had started business for the first time. We will wait and see how this pans out,” added Thorat.

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