Shimla — In a move to enhance market dynamics and benefit apple growers, the Himachal Pradesh government has announced new rules allowing buyers from outside states to purchase apples directly from orchardists in the state’s fruit mandis. This initiative aims to dismantle the long-standing monopoly of commission agents, fostering a more competitive environment.
Buyers from other states will soon have the opportunity to buy apples directly from Himachal’s fruit growers. This decision is part of a broader strategy to promote competition and ensure better prices for the state’s fruit growers.
To facilitate this change, the government plans to provide shops to loaders in the mandis. These shops will improve accessibility for loaders and contribute to a more competitive market atmosphere.
Horticulture Minister Jagat Singh Negi has directed the Agricultural Produce Marketing Board to initiate the process of implementing these changes. A meeting with the Horticulture Secretary is scheduled for this week to finalize the arrangements.
The government is considering issuing licenses and providing space to arhtiyas (commission agents) and traders from other states in the APMC (Agricultural Produce Market Committee) mandis. “We will give them platforms and offices in our market yards alongside the local arhtiyas to buy fruit through auction. The idea is to introduce greater competition among the arhtiyas, which will benefit fruit growers and farmers,” said Horticulture Minister Jagat Singh Negi.
This new system is expected to be implemented this year following amendments to the existing rules. Orchardists are anticipated to benefit from higher prices for apples due to increased competition between commission agents and loaders. Currently, commission agents dominate the 10 APMC mandis operating in the state under the Agricultural Marketing Board.
Licenses for commission agents are issued under the APMC Act and must be renewed annually. Some apple buyers who conduct business on the roadside outside the mandis will also be given shops within the mandis. Additionally, transporters from other states will be able to apply for shops in the mandis.
Negi mentioned that interested arhtiyas and traders would be called for a meeting shortly to set up shop in the APMC mandis. “We have adequate space to accommodate the new market yards coming up. The greater competition among arhtiyas will lead to better remunerative prices for the farmers,” he added.
Apple growers have welcomed the step, expecting it to lead to better prices and secure payments. Lokender Bisht, an apple grower, stated, “If arhtiyas from Chandigarh, Delhi, and other big centers, having strong financial backing, set up shops in the APMC mandis, it will enhance competition and the growers will benefit a lot.” Currently, local arhtiyas dominate the APMC mandis, and cases of delayed payments and payment defaults are increasing.
However, a section of local arhtiyas is against the decision. “If traders buying produce from the APMC mandis are allowed to function as arhtiyas, who will be the buyer then? The decision will further hit the mandis, which are already reeling under a crisis as most traders buy produce on credit,” said a local arhtiya.
Local arhtiyas suggest that if the government wants to enhance competition, it should cancel the licenses of commission agents doing business outside the mandis and bring these agents to the mandis to increase competition.