The ministry of consumer affairs,food and public distribution is at loggerheads with the ministry of agriculture over a proposal to set up an institution similar to Forward Markets Commission (FMC) under the proposed Inter-State Agriculture Produce Trade and Commerce Bill,2012.
The proposed regulator is likely to be placed under the agriculture ministry. This has not gone down well with the food ministry,which is looking at taking a stern step on this issue.
A draft Cabinet note on the Bill received by it from the department of agriculture was examined in consultation with FMC. According to the draft Cabinet note,The bill intends to bring in a progressive national legislation for promotion,development and effective regulation of agriculture produce so as to involve a common national market.
The draft Cabinet note suggested setting up of an inter-state trade and commerce regulatory authority which would notify specific commodities from time to time to develop,promote and regulate national level marketing,distribution and channelising trade.
By this move,it is hoped that inter-state trade barriers will be removed and development and growth of inter-state trade and commerce take place seamlessly across the country in all commodities. The two central mechanisms to achieve this would probably be the APMC & Spot exchanges, the draft note said.
Currently it is the FMC that regulates trading in commodity futures and on the spot exchanges.