Agricultural produce

market committee

An Agricultural Produce Market Committee

(APMC) is a marketing board established
by state governments in India to ensure
farmers are safeguarded from exploitation
by large retailers, as well as ensuring the
farm to retail price spread does not reach
excessively high levels. APMCs are
regulated by states through their adoption
of a Agriculture Produce Marketing
Regulation (APMR) Act.[1]

Prior to independence in 1947, the major

concern of Government policy related to
agricultural marketing was to keep the
prices of food for the consumers and
agro-raw materials for the industry in
check. However, after independence, there
came a need to protect the interest of
farmers and to provide them incentive
prices to augment the production of
agricultural commodities. Common
throughout the country were problems of
local money lenders extorting high
amounts of foodgrains from the farmer, at
throwaway prices, as interest. Recognizing
the defects that farmers faced—such as
losses in terms of undue low prices, higher
costs of marketing, and considerable
physical losses of the produce in the
agricultural marketing system—the Indian
Government introduced several mandatory
regulations in hopes of establishing a
mechanism to monitor the market
conduct. Regulation and development of
primary agricultural produce markets was
taken up as an institutional innovation, and
construction of well laid out market yards
was considered as an essential
requirement for regulating the practices in
primary wholesale markets.
History
The concept of a agriculture produce
market regulation programme in India
dates back to the British Raj: raw cotton
was the first farm produce to attract the
attention of the Government due to the
anxiety of British rulers to make available
the supplies of pure cotton at reasonable
prices to the textile mills of Manchester
(UK). Consequently, India's first regulated
market (Karanja) was established in 1886
under the Hyderabad Residency Order, with
the first legislation being the Berar Cotton
and Grain Market Act of 1887, which
empowered British residents to declare
any place in the assigned district a market
for sale and purchase of agricultural
produce and constitute a committee to
supervise the regulated markets. This Act
became the model for enactment in other
parts of the country.

An important landmark in the agricultural

marketing scene in the country has been
the recommendation of the 1928 Royal
Commission on Agriculture for regulation
of marketing practices and establishment
of regulated markets.[2] One of the
measures taken to improve the situation
was to regulate the trade practices and to
establish market yards in the countryside.
In pursuance, Government of India
prepared a Model Bill in 1938 and
circulated it to all states; however, not
much headway was made until India's
independence.

During the 1960s and 1970s, most of the

states enacted and enforced Agricultural
Produce Markets Regulation (APMR) Acts.
All primary wholesale assembling markets
were brought under the ambit of these
Acts. Well laid out market yards and sub-
yards were constructed and, for each
market area, an Agricultural Produce
Market Committee (APMC) was
constituted to frame the rules and enforce
them. Thus, the organized agricultural
marketing came into existence through
regulated markets.

In 2015, the year's Union Budget proposed

to create a United National Agriculture
Market[3] with the help of state
governments and NITI Ayog.

Reforms

Reforms have been passed by the

Government of India in the form of three
acts in 2020:

1. the Farmers' Produce Trade and

Commerce (Promotion and
 Facilitation) Act
2. the Farmers (Empowerment and
Protection) Agreement on Price
Assurance and Farm Services Act;
and
3. the Essential Commodities
Amendment Act' under which the
monopoly of middlemen in APMCs is
sought to be abolished and move
towards creation of a free market.
While cartelization has been a big
problem in APMCs, these bills have
been criticized by the farmers
themselves because of the fear that
these laws will lead to degradation of
 APMCs and eventually Minimum
Support Price will be diluted.[4]

This has led to protests by farmers in India

specially Punjab, Haryana and west parts
of Uttar Pradesh.[5][6][7]

Overview
APMCs operate on two principles:

1. Ensure that farmers are not exploited

by intermediaries (or money lenders)
who compel farmers to sell their
produce at the farm gate for an
extremely low price.
2. All food produce should first be
brought to a market yard and then
 sold through auction.

Each state that operates APMC markets

(mandis) establish their markets in
different places within their borders,
geographically dividing the state. Farmers
are required to sell their produce via
auction at the mandi in their region.
Traders require a license to operate within
a mandi. Wholesale and retail traders (e.g.
shopping mall owners) and food
processing companies cannot buy
produce directly from a farmer.
APMC Model Act, 2003

Some of the salient features of the APMC

Model Act 2003 include:

1. Facilitating contract farming model.

2. Special market for perishables
3. Allowing farmers and private persons
to set up their own market.
4. Relaxation of licensing norms.
5. Single market fee
6. APMC revenue to be used for
improving market infrastructure.

However, not all states have passed the

bill. Some states have passed but neither
framed rules nor notified it. Thus, inter-
state barriers continue.

APMC by state

Madhya Pradesh

The Government of Madhya Pradesh has

taken several initiatives so that farmers
may get a better price for their produce.

Karnataka

The Government of Karnataka has created

APMCs in many towns to enable farmers
to sell their produce at reasonable prices.
Most APMCs have a market where traders
and other marketing agents are provided
stalls or godowns or shops to purchase
agricultural produce from farmers.
Farmers can sell their produce to agents
or traders under the supervision of the
APMC.There are approximately one
hundred sixty two (162) Agricultural
Produce Market Committee ( APMC)
regulated markets all across Karnataka
state.[8] The APMC market yard have basic
amenities like refreshment room/stall
,toilet, drinking water supply. Some of the
bigger APMC markets have bank branch,
post office, cold storage
facilities.Bengaluru's APMC regulated
market at Yeshawanthpur is one of the
largest APMC market in South India.[9]

Prior to 2020, farmers couldn’t sell

produce outside the APMC mechanism.
The APMC system made farmers
vulnerable to traders' and marketing
agents' price manipulations. The
Government of India has considered
improving the APMC Act to benefit all
parties involved.

In 2020, the Government of Karnataka

passed The Karnataka Agricultural
Produce Marketing (Regulation and
Development) (Amendment) Bill, 2020,
which enables farmers to trade their
produce anywhere without the intervention
of APMCs. It also allowed Food
processing companies to buy produce
directly from farmers.[10][11][12][13]

Maharashtra

The Maharashtra State Agricultural

Marketing Board (MSAMB)[14] runs 295
APMCs in Maharashtra, under the APMC
Act enacted by the Government of India.[15]
In July 2016, the Maharashtra Government
removed fruits and vegetables from the
purview of the APMCs,[16] urging farmers
to directly bring their produce for sale in
Mumbai. The government has granted 148
Direct Marketing Licenses, of which 91 are
for fruits and vegetables. The APMC in
Pune, meanwhile, appealed to the farmers
from the state as well as from outside to
bring their produce to the market and sell
those directly..

Tamil Nadu

In Tamil Nadu, the Tamil Nadu State

Agricultural Marketing Board, successfully
running since 1977, is the regulatory board
for agricultural markets. 21 market
committees are established for every
notified area, and 277 regulated markets
are functioning under these committees
for better regulation of buying and selling
of agricultural produce.[17]

Andhra Pradesh

The Andhra Pradesh (Agricultural Produce

and Livestock) Markets Act Government
Order was passed in Andhra Pradesh in
1966, and was amended in 1969.[18]

See also
National Agricultural Cooperative
Marketing Federation of India
E-NAM
References
1. Department of Agriculture, Co-operation &
Farmers Welfare. 2017. "The Agricultural
Produce and Livestock Marketing
(Promotion and Facilitation Act), 2017 (htt
p://agricoop.nic.in/sites/default/files/APL
M_ACT_2017_1.pdf) ." Delhi: Ministry of
Agriculture & Farmers' Welfare,
Government of India.
2. Abbasi, Adnan; Tripathi, Raya (2021-01-
26). "Locating India's Mandi System in
Historical and Contemporary Contexts" (ht
tps://www.globalviews360.com/articles/l
ocating-indias-mandi-system-in-historical-
and-contemporary-contexts) . Global
Views 360.
3. "National Agriculture Market (e-NAM) is
expanding to ease farmers. The pan-India
trading portal is helping realize the vision
of "One Nation, One Market" for agri-
produce. Expansion of Integration of 1000
new mandis" (https://pib.gov.in/PressRele
asePage.aspx?PRID=1695193) . PIB
Press Release.
4. "India's new farm bills: What's good, what
may not be" (https://www.wionews.com/i
ndia-news/indias-new-farm-bills-whats-go
od-what-may-not-be-330262) . WION. 25
September 2020. Archived (https://web.ar
chive.org/web/20201128030508/https://
www.wionews.com/india-news/indias-ne
w-farm-bills-whats-good-what-may-not-be-
330262) from the original on 2020-11-28.
Retrieved 2020-09-26.
5. Mishra, Himanshu Shekhar (25 September
2020). Srinivasan, Chandrashekar (ed.).
"Massive Farmer Protests In Punjab,
Haryana, Parts Of UP Over 3 Bills" (https://
www.ndtv.com/india-news/massive-farme
rs-protest-in-punjab-haryana-parts-of-uttar
-pradesh-roads-rail-tracks-blocked-230082
1) . NDTV.com. Archived (https://web.arch
ive.org/web/20200925215154/https://ww
w.ndtv.com/india-news/massive-farmers-
protest-in-punjab-haryana-parts-of-uttar-pr
adesh-roads-rail-tracks-blocked-230082
1) from the original on 2020-09-25.
Retrieved 2020-09-26.
6. Botekar, Abhilash (22 December 2020).
"farmers protest: Maharashtra farmers
march to Delhi against new agri laws" (htt
ps://timesofindia.indiatimes.com/city/nas
hik/hundreds-of-farmers-from-across-stat
e-march-to-delhi-against-new-laws/article
show/79844316.cms) . The Times of
India. Archived (https://web.archive.org/w
eb/20201221232040/https://timesofindia.
indiatimes.com/city/nashik/hundreds-of-f
armers-from-across-state-march-to-delhi-a
gainst-new-laws/articleshow/79844316.c
ms) from the original on 2020-12-21.
Retrieved 2021-11-22.
7. "Farmers' protest highlights: Madhya
Pradesh farmers head to Delhi to join
protests against farm laws" (https://www.
hindustantimes.com/india-news/farmers-
protest-live-updates/story-KfDN1fQytvP2
MQht7MkK8H.html) . Hindustan Times. 2
December 2020. Archived (https://web.arc
hive.org/web/20201202013415/https://w
ww.hindustantimes.com/india-news/farm
ers-protest-live-updates/story-KfDN1fQytv
P2MQht7MkK8H.html) from the original
on 2020-12-02.
8. "APMC Resolutions" (https://www.krishim
aratavahini.kar.nic.in/Markets/MarketProfi
le.aspx) . Retrieved 1 April 2023.
 9. Mohit M Rao. "How Bengaluru's APMC
yard works and what it means for farmers:
Here's all you need to know" (https://beng
aluru.citizenmatters.in/how-bengaluru-ap
mc-system-works-farm-laws-yeshwanthpu
r-yard-commission-agents-farmers-carteli
sation-53196) . Retrieved 1 April 2023.
10. "Karnataka assembly approves
amendment to the APMC Act" (https://ww
w.livemint.com/news/india/karnataka-ass
embly-approves-amendment-to-the-apmc-
act-11601132366009.html) . 26
September 2020.
11. https://timesofindia.indiatimes.com/city/b
engaluru/karnataka-amid-stir-apmc-bill-
clears-council-hurdle/articleshow/79655
12. "APMC (Amendment) Bill adopted amidst
Cong. Walkout" (https://www.thehindu.co
m/news/national/karnataka/apmc-amend
ment-bill-adopted-amidst-cong-walkout/ar
ticle33292850.ece) . The Hindu. 9
December 2020.
13. "Karnataka Assembly clears contentious
APMC Bill" (https://www.deccanherald.co
m/state/top-karnataka-stories/karnataka-
assembly-clears-contentious-apmc-bill-92
5800.html) . 10 December 2020.
14. Maharashtra State Agriculture Marketing
Board homepage (http://www.msamb.co
m/)
15. "Archived copy" (https://web.archive.org/w
eb/20160422112810/https://ec.maharash
tra.gov.in/files/SEIAA_72_46.pdf) (PDF).
Archived from the original (https://ec.mah
arashtra.gov.in/files/SEIAA_72_46.pdf)
(PDF) on 2016-04-22. Retrieved
2016-03-27.
16. Sawant, Sanjay (13 July 2016).
"Maharashtra APMC traders call off strike
but Fadnavis faces uphill task to scrap
act" (https://www.firstpost.com/india/ma
harashtra-apmc-traders-call-off-strike-but-
opposition-to-scrapping-act-remains-2891
372.html) . Firstpost. Retrieved
2020-09-20.
 17. "Tamilnadu State Agricultural Marketing
Board [TNSAMB]" (https://web.archive.or
g/web/20160409013939/http://www.tnsa
mb.gov.in/schemes.html) . Archived from
the original (http://www.tnsamb.gov.in/sc
hemes.html) on 2016-04-09. Retrieved
2016-03-27.
18. "Market Rules" (https://market.ap.nic.in/ht
ml/Market_Rules.html) .

External links
Maharashtra State Agriculture Marketing
Board [MSAMB]: Homepage (http://ww
w.msamb.com/)

Retrieved from
"https://en.wikipedia.org/w/index.php?
title=Agricultural_produce_market_committee&old
id=1147647017"

This page was last edited on 1 April 2023, at

08:20 (UTC). •
Content is available under CC BY-SA 4.0 unless
otherwise noted.