New apple trade rules in Himachal could improve market dynamics

In a bid to improve market dynamics for apple growers, the Himachal Pradesh government has introduced a law that allows buyers from outside the state to directly purchase apples from growers in the state mandis. The policy aims to break the monopoly of commission agents and create a competitive market.

Buyers from outside the state will be able to deal directly with Himachal Pradesh fruit growers, as part of a broader strategy to encourage competition and ensure better prices for local fruit producers. To support this initiative, the government will allocate shops to loaders in mandis, increasing accessibility and fostering a competitive market environment.

The Agricultural Produce Marketing Board has been directed by Horticulture Minister Jagat Singh Negi to start the process of implementing these changes. A meeting has been scheduled this week to finalise the details.

The government’s plan includes issuing licenses and providing space for APMC headquarters arthtia (commission agents) and traders from other states. “We will provide them platforms and offices in our market yards next to local arhtiyas so that they can buy fruits through auctions. The idea is to introduce more competition among arhtiyas, which will benefit fruit growers and farmers,” Negi explained.

Following amendments to existing rules, this new system is expected to be introduced this year, potentially leading to higher apple prices due to increased competition. Currently, commission agents dominate state APMC mandis and licences issued under the APMC Act need to be renewed every year. Provisions will also be made for roadside apple buyers and transporters from other states to set up shops in the mandis.

Source: thenewshimachal.com