What is APMC Act in India?

The Government of India designed a model Agricultural Produce Market Committee (APMC) Act in 2003 as a first attempt to bring reformations in the agricultural markets. Provisions under this act were: New market channels other than APMC markets. Private wholesale markets.

What is the function of APMC?

APMC RESPONSIBILITIES AND FUNCTIONS: Ensuring transactions taking place in the market area. Focus on providing complete transparency in the pricing system. Ensuring payment for the agricultural produce that is sold by the farmers, on the same day.

What is the meaning of APMC?

APMC means the Agricultural Produce & Livestock Market Committee established under the provisions of APLM Act.

What states have APMC?

At one end, there is Punjab and Haryana, where APMCs are most developed, and contribute a large share of food grains procured for the central pool. At another end is Bihar, which in 2006, abolished the APMC act, but where the alternative markets have not developed.

What is the full form of APMC in agriculture?

8.1 INTRODUCTION. Presently, markets in agricultural products are regulated under the Agricultural Produce Market Committee (APMC) Act enacted by State Governments.

What is Mandis in agriculture?

Well laid out market yards and sub-yards were constructed, and for each market area, an APMC was constituted to frame the rules and enforce them. Thus, organised agricultural marketing came into existence through regulated markets- otherwise referred to as mandis.

How many APMC markets are there in India?

The Ministry of Agriculture and Farmers Welfare told Lok Sabha in February this year that there are 6,946 regulated wholesale APMC mandis as on March 2018. The e-NAM website data shows that 1,000 mandis (14 per cent) across 18 States and 3 Union Territories are integrated.

How does Mandis work in India?

Under the mandi system farmers bring paddy and wheat to the shop of the commission agent (arhtia) in regulated Agricultural Produce Marketing Committee (APMC), or mandi, yards for sale. This assured purchase at MSP has been the main source of income support for Punjab’s farmers.

Why Mandis are necessary in India?

Mandis provide a regulated market space that reduces some of the challenges and encourages fair competition, as well as synergies between arhatiyas and farmers. The implementation of the Farm laws 2020 will create geographically dispersed trading areas with wide information asymmetries among the farmers.

Which states have APMC Mandis?

Rajasthan has integrated the highest number of mandis (144) on e –NAM, followed by Uttar Pradesh (125), Gujarat (122), Maharashtra (118) and Haryana (81). Out of total mandis on e-NAM, 59 per cent mandis are from these top five States.

What is the APMC Act?

APMC Act is a legislation which governs the sale of agricultural produce by farmers in mandis (APMC yards). As Agriculture is a state subject, each state assembly has their separate APMC acts. Pros-. The Act provides licenses to authorized agents to promote selling of farmer’s harvest.

What is the role of APMC in agricultural marketing?

Agricultural Produce Market Committee (APMC) is a system operating under the State Government since agricultural marketing is a State subject. The APMC has Yards/Mandis in the market area that regulates the notified agricultural produce and livestock.

Why can’t I buy from the APMC?

The APMC (Agricultural Produce Market Committees) is a relic of the past that forces the farmers to sell their produce only to middlemen approved by the government in authorized Mandis (markets). Thus, if you are a vegetable producer and I’m a supermarket, I cannot directly buy from you. Both of us need to go through a broker.

Is APMC a hindrance to the farmer?

Furthermore, even though the act is planned to avoid monopoly, the act tacitly allows monopoly of the APMC over buying the farmer’s produce. Prevalent corruption in APMCs and typical bureaucratic machinery also act as hindrances to the farmer.