Agricultural Produce Markets Committee (APMC)

Agricultural marketing is witnessing major changes world over, owing to liberalization of trade in agricultural commodities. To benefit farming community for the new global market access opportunities, the internal agricultural marketing system in the country needs to be integrated and strengthened. In this context, Government of India in the Ministry of Agriculture appointed an Expert Committee on 19th December 2000 followed by an Inter Ministerial Task Force to review the present system of agricultural marketing in the country and to recommend measures to make the system more efficient and competitive. 

The Committee and the Task Force in their Reports of June 2001 and May 2002 respectively, have suggested various reforms relating to agricultural marketing system as well as in policies and programs for development and strengthening of agricultural marketing in the country. The reports have noted that the situation of control over agricultural markets by the State has to be eased to facilitate greater participation of the private sector, particularly to engender massive investments required for the development of marketing infrastructure and supporting services.

The Ministry of Agriculture, Government of India accordingly set up a committee under the chairmanship of Shri. K.M. Sahni, Additional Secretary, Department of Agriculture and Cooperation to formulate a model law on agricultural marketing in consultation with the States. 

The draft model legislation was fully discussed by the Committee at Pune on 8th and 9th September 2003 and finalized.

The draft model legislation titled the State Agricultural Produce Marketing (Development and Regulation) Act, 2003, provides for establishment of Private Markets/ yards, Direct Purchase Centres, Consumer/Farmers Markets for direct sale and promotion of Public Private Partnership in the management and development of agricultural markets in the country. It also provides for separate constitution for Special Markets for commodities like Onions, Fruits, Vegetables, Flowers etc. A separate chapter has been included in the legislation to regulate and promote contract-farming arrangements in the country. It provides for prohibition of commission agency in any transaction of agricultural commodities with the producers. 

It redefines the role of present Agricultural Produce Market Committee (APMC) to promote alternative marketing system, contract farming, direct marketing and farmers/consumers markets. It also redefines the role of State Agricultural Marketing Boards to promote standardization, grading, quality certification, market led extension and training of farmers and market functionaries in marketing related areas. Provision has also been made in the Act for constitution of State Agricultural Produce Marketing Standards Bureau for promotion of Grading, Standardization and Quality Certification of Agricultural Produce. This would facilitate pledge financing, E-trading, direct purchasing, export, forward/future trading and introduction of negotiable warehousing receipt system in respect of agricultural commodities.

What is APMC?

Agricultural Produce Market Committees (APMC) is the marketing boards established by the state governments in order to eliminate the exploitation incidences of the farmers by the intermediaries, where they are forced to sell their produce at extremely low prices.

All the food produce must be brought to the market and sales are made through auction. The market place i.e., Mandi is set up in various places within the states. These markets geographically divide the state. Licenses are issued to the traders to operate within a market. The mall owners, wholesale traders, retail traders are not given permission to purchase the produce from farmers directly.

The APMC has Yards/Mandis in the market area that regulates the notified agricultural produce and livestock.

The introduction of APMC was to limit the occurrence of distress sale by the farmers under the pressure and exploitation of creditors and other intermediaries.

APMC ensures worthy prices and timely payments to the farmers for their produce.

APMC is also responsible for the regulation of agricultural trading practices. This results in multiple benefits like:

• Needless intermediaries are eliminated. 
• Improved market efficiency through a decrease in market changes.
• The producer-seller interest is well protected.

e-NAM & APMC

The National Agriculture Market (NAM) is a pan-India electronic trading portal, which links the existing Agricultural Produce Market Committee (APMC) mandis across the country to form a unified national market for agricultural commodities.

The e-NAM portal is a single-window service for any information and services related to APMC that includes:

1. Commodity arrivals and prices.
2. Buy and sell trade offers.
3. Provision to respond to trade offers, among other services.

The NAM reduces the transaction costs and information irregularity even when the agriculture produce continues to flow through the mandis.

For Registration click here: Direct link to e-NAM REGISTRATION

To know more about e-NAM process: Click here to visit e-NAM web portal

Details on Model APMC Act of 2003

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.
• Direct purchase.
• A contract for buyers and farmers.

The Market Committees under the APMC Act, 2003 was responsible for:

• Ensuring transparency in the transactions and pricing system of the market area.

• Providing market-led extension services to farmers.

• Ensuring that farmers are paid for the produce sold on the same day.

• Promoting agricultural processing that will increase the value of the produce.

• Making the availability and dates public on which the agricultural produce is brought to the market.

• Promoting and establishing Public-Private Partnerships (PPP) in these markets.