The Karnataka Meeting on Monday handed the Karnataka Agricultural Produce Advertising (Regulation and Improvement) (Modification) Invoice, which brings e-commerce platforms like D Mart, Massive Basket, and Amazon underneath its regulatory framework. As soon as enacted, these platforms might be required to pay cess when promoting agricultural merchandise reminiscent of rice and dal.
Shivanand Patil said that earlier rules utilized solely to APMC yards, however the brand new legislation will lengthen to on-line buying and selling platforms as nicely.(Representational Picture/Unsplash)
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Presenting the invoice within the Meeting, State Agricultural Advertising Minister Shivanand Patil said that earlier rules utilized solely to APMC yards, however the brand new legislation will lengthen to on-line buying and selling platforms as nicely. He defined that e-commerce corporations conducting enterprise with out adhering to present authorized provisions would now be held accountable. “Platforms like D Mart, Big Basket, Amazon, and Udaan have been operating outside our regulatory system. This amendment ensures they comply with cess payments and operate within the legal framework,” Patil instructed the Home.
The invoice additionally introduces new provisions, together with the regulation of warehouse service suppliers. Beforehand, the legislation solely referred to ‘merchants,’ however now, warehouse service suppliers are explicitly outlined, together with their duties. The APMC Director will oversee their operations, and an appellate authority will deal with disputes. Patil famous that Udaan lately paid a advantageous of ₹25 lakh for evading cess, highlighting the necessity for stricter enforcement.
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Below the modification, an ‘e-commerce platform’ is outlined as a web-based medium that enables licensed merchants to promote agricultural produce on to licensed retail merchants inside a specified market space. These gross sales have to be for shopper use solely and never for resale or processing. Farmers may also be capable to make funds by way of digital cost strategies, guaranteeing smoother transactions.
The invoice additional clarifies the function of warehouse service suppliers, who will now cost a service charge solely to the customer. The fees are capped at 5% of the sale worth for fruits, greens, and flowers and a pair of% for different notified produce. Warehouse operators should guarantee secure storage of products, present insurance coverage protection in opposition to dangers reminiscent of fireplace, theft, or pure disasters, and supply important services like fire-fighting gear, digital weighing programs, e-trading companies, and high quality certification. Moreover, they are going to be accountable for displaying commodity costs in markets and facilitating pledge mortgage preparations.
(With company inputs)