APMC

(Agriculture Produce Marketing Committee )

 Why?
- Zamindari se bachaav. (Important)
- Farmers can sell their produce only in APMC.

 Benefits :-
- Auction Halls. (Easy to Sell)
- Retail shops. (cheap prices)
- Soil Testing and other facilities.
- Commission Agents (Licensed) (2.5 Commission) (Helps Farmers
for Weighing Produce, Quality Check etc...).
- Recording of Auction (Trust).
- MSP.
 Problems :-
- Cartels (Oligopoly) (Cartelization)
- Cascading
- 10-15% to Farmers (If you are buying a agri-produce at 40/- per
KG, assume that the Farmer got only 10-15% of it.) (Different kind of
fees is added, MF(Market Fees, 3%), RDS(Rural Development Cess,
3%), Commission Agent, 2.5% )
- Politics
 Reforms :-
- Model APMC Act,2003 (By Atal Bihari Vajpayee government) (As
the Atal Bihari Vajpayee Government did not had Majority to paas
this Act at that time,he simply requested the state governments to
adopt this Model Act.)
- Till 2016, More than 15 States have Adopted this Act.
- Maharashtra, Bihar, Delhi, Karnataka were the first states to
Adopt this Model Act.

 Maharashtra (Case Study)

- Maharashtra CM Vilas Rao Deshmukh Government Adopted this
Model APMC Act.
- Maharashtra Government issued License for Private Markets for
Private Players. It will be Regulated by the Government and will
have to be renewed every year to avoid exploitation of farmers.
- Till Date, Maharashtra government has issued 18 Private Market
License.
- Maharashtra Government has also issued Direct Market License
for Players who wanted to deal and trade directly with the farmers.
(Reliance Fresh)
- Till Date, Maharashtra government has issued 1,100 Direct
Market License.
- Last year Report said :-
o Last year's APMC transaction in MAHARASHTRA was 48,000
Cr.
o And Pvt. M/DML Transaction was 11,000 Cr.