Fair trade regulator CCI is closely studying various aspects of the country’s agricultural market, amid rising prices of vegetables. The Competition Commission of India (CCI) has the mandate to keep a tab on anti-competitive practices at the market place.
According to a source, the regulator was closely looking at the agriculture market and is discussing the issues with various stakeholders.
Recently, CCI also held deliberations with the Commission for Agricultural Costs and Prices (CACP) Chairman Ashok Gulati to have a better understanding of the market.
CCI is studying the agriculture market to check whether there are any unfair trade practices and similar things. “Right now, we are only looking at various aspects,” the source said.
In the recent past, prices of vegetables have increased even though the country has witnessed good rainfall.
Last year, a study instituted by CCI had found that there were clear imperfections including cartelisation and hoarding that impacts price of onions. Bangalore-based Institute for Social and Economic Change had conducted that study.
“Results of seasonal indices, correlations, daily, monthly arrivals their prices etc. indicated existence of anti-competitive elements in the onion markets.
“A few big traders having well connected networks with market intermediaries in other markets seem to play a major role in hoarding for expected high prices,” the study had said.
A parliamentary standing committee on agriculture is also reviewing the method of fixing benchmark prices of crops.
The panel, chaired by Basudeb Achariya, has sought comments from various stakeholders and experts on pricing policy as well as the Agricultural Biosecurity Bill 2013. The Comptroller and Auditor General recently pulled up the government for fixing the minimum support prices (MSPs) of food crops in a ?skewed? manner without following specific guidelines.
?The Committee … is examining the methodology involved in fixation of MSP; need to broad base crops covered; market intervention to protect farmers from distress sale; evolving a balanced and integrated price structure, etc,? the statement added.
At present, the CACP suggests the MSPs, factoring in the cost of production among other elements.
The government then fixes the MSPs based on the CACP recommendations.
However, many farmer organisations have criticised the government?s, as well as the CACP?s price fixing policy, saying it is flawed and does not offer remunerative prices to producers.
