Chambers seeks end to collection of market levy
- Requests minister Atchannaidu to intervene against AMCs that are unlawfully collecting fees on commodities purchased outside their designated market areas
- President Bhaskara Rao clarifies that under state law, market fees should only apply to actual sales within a notified area
- Federation warns that these illegal collections are creating financial burdens for agri-based MSMEs
Vijayawada: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) President Potluri Bhaskara Rao submitted a representation to minister for agriculture, cooperation and marketing K Atchannaidu seeking urgent intervention against the unlawful collection of market levy by certain agricultural market committees (AMCs).
Bhaskara Rao said in the representation that several traders, processors and agri-based MSMEs have reported that some AMCs are collecting market fee on agricultural commodities purchased outside their notified market area, including inter-district and inter-state purchases. The levy is being demanded merely because the goods enter, pass through, or are stored within the market yard limits.
He clarified that under the AP Agricultural Produce and Livestock Markets Act, 1966, market fee is leviable only when a sale or purchase takes place within the notified market area.
Treating market fee as a charge for entry, transit, or storage of goods is not supported by law and has been consistently disapproved by courts. Such practices effectively convert market fee into an ‘entry tax’ or ‘transit fee,’ which is not permitted under the Act.
AP Chambers pointed out that this practice is causing unnecessary financial burden, confusion, and harassment, particularly for small and medium traders, processors, and agri-businesses operating across districts and states. It is also adversely affecting ease of doing business and the efficiency of agricultural marketing in Andhra Pradesh.
In the representation, he has requested the Government to issue clear instructions to all Agricultural Market Committees reiterating that market fee is applicable only to transactions within the notified market area, and to prevent collection of levy on commodities purchased outside the jurisdiction of the concerned market committee, including inter-state purchases. The Chambers also sought uniform implementation of the Act and a simple grievance redressal mechanism for traders.
Bhaskara Rao expressed hope that timely intervention by the Minister would bring clarity, stop arbitrary practices, and strengthen transparent and lawful agricultural marketing in the State. AP Chambers assured its full cooperation with the government in this regard.
