Farmers are in apprehension of abolishing the mandi system hence Union Agriculture Minister Narendra Singh Tomar said the new farm law will not impact the the mandi system in India .
He said “APMCs are governed by state laws and the Centre’s new Trade Act does not impinge in the functioning of Mandis”. Private players will get the tax exemption while on other hand APMCs are continued with taxation by government, is the main reason of concern for farmers.
Explaining why the private purchase of the farmer’s produce has been exempted from taxation, Narendra Singh Tomar said, “We did not want to impose a tax on the farmer’s additional earning. If we would have taxed private purchase, the consumer would have extracted the cost from the farmer ultimately and we didn’t want that.”
He also added that most of the states have reduced the taxation of government APMCs to a minimum and will continue to do so in the future. “Madhya Pradesh reduced the cess to 0.5 per cent. Punjab and Haryana have significantly reduced the tax on paddy. All such decision are taken by states. Any change will take some time to implement.”