A new strategy has been formulated in Uttar Pradesh to ensure that farmers get better prices for their produce. Under this strategy, the rules for setting up markets (mandis) in the private sector will be simplified. Preparations are underway to reduce the minimum land area, security deposit, and project cost. Additionally, the government may provide various incentives for the expansion of basic infrastructure.
Increasing competition through private mandis
The UP government aims to increase competition in the market. For this, emphasis is being placed on the establishment of mandis by the private sector. In 2019, the Uttar Pradesh Agricultural Produce Market (21st) Amendment Rules were introduced. According to these rules, the license fee was set at ₹2 lakh in 17 major cities and ₹1 lakh in other areas. Despite this, private investors have not yet become active. In this context, the Department of Agricultural Marketing and Agricultural Foreign Trade is studying the operations of private mandis in other states.
Changes in project cost and land standards
For a private mandi in large cities, the current standard requires two hectares of land and a project cost of ₹10 crore. However, such large land parcels are not available in urban areas. The security deposit is also high. Therefore, preparations are underway to reduce the land requirement and security deposit. The government is also considering providing various facilities to investors.
Essential facilities for private mandis
A private mandi requires an auction hall, sheds, shops, warehouses, storage facilities, canteens, laboratories, packaging areas, loading and unloading zones, weighbridges, and proper roads. At the time of land transfer, the government is considering providing facilities such as stamp duty exemption, electricity, and drinking water. Currently, the state has 249 regulated mandis and 356 sub-mandis.
Proposed cities for mandi establishment
For mandis with a project cost of ₹10 crore, the selected cities are Agra, Lucknow, Kanpur, Bareilly, Barabanki, Varanasi, Lalitpur, Gorakhpur, Prayagraj, Shahjahanpur, Lakhimpur, Ghaziabad, Meerut, Gautam Buddha Nagar, Aligarh, Moradabad, and Saharanpur. Locations with a project cost of ₹5 crore are district headquarters and other areas. By reducing costs and relaxing rules, it is expected that private investors will be attracted.
Benefits of competition in the market
The arrival of private mandis will increase competition in the market, benefiting farmers. Farmers will sell their produce where they get better facilities and prices. The presence of private mandis will also bring modern facilities such as processing units and cold storage.
Efforts to increase farmers’ profits
Efforts to ensure higher profits for farmers are ongoing. Facilities in government mandis have been improved compared to earlier. The arrival of private mandis will provide farmers with better options. In areas where government mandis are not present, private mandis will offer farmers convenient marketing facilities close to their homes.
