Table of Contents
Agricultural Produce Marketing Committee (APMC)
In India, where farming is a way of life for many, the journey of agricultural products from fields to homes involves several important steps. At the core of this is the Agricultural Produce Marketing Committee (APMC), a key part of India’s farming world. The APMC acts like a protector, making sure that farmers can sell what they grow in a fair and equal way. It also looks out for what consumers need.
Read about: Government Schemes
What is APMC?
The Agricultural Produce Market Committee (APMC) is like a protective shield for farmers in India. It was set up by state governments to make sure that farmers are treated fairly and not taken advantage of by big stores. It also helps in controlling the prices of goods from farms to shops, so they don’t get too high. The APMC has special places called “yards” or “mandis” where they watch over the crops and animals that are being sold.
In these mandis, there’s a special way of selling things called an auction. Farmers bring their fresh crops to the mandis, and people bid to buy them. The highest bidder gets to buy the crops. This helps farmers get a good price for their hard work.
One important rule is that mall owners, big traders, and small shopkeepers can’t buy directly from the farmers. They have to buy things in the mandis through auctions. This way, everyone plays fair, and farmers don’t get forced to sell their crops for very low prices.
The APMC was introduced to stop farmers from being pushed to sell their crops quickly and cheaply because of pressure from lenders and middlemen. It’s here to make sure farmers get paid fairly and on time for what they grow. The APMC also looks after the way trading in agriculture works.
Read about: National Education Policy
APMC and e-NAM
|Dimensions||APMC (Agricultural Produce Market Committee)||e-NAM (National Agriculture Market)|
|Purpose||Regulate physical markets (mandis) for fair trade and price protection.||Create an online trading platform to enhance market access.|
|Establishment||Set up by state governments in various states of India.||Launched by the Government of India at the national level.|
|Scope||Operates at the state level, with individual mandis under APMC.||Operates across the entire country through an online portal.|
|Trading Mode||Usually involves physical presence of farmers and traders in mandis.||Enables online trading of agricultural commodities.|
|Auction System||Follows traditional auction methods in physical mandis.||Utilizes electronic auction and bidding methods.|
|Direct Buying||Prevents direct purchase by mall owners and large traders.||Enables farmers to directly trade with buyers and processors.|
|Flexibility||Varies from state to state in terms of rules and regulations.||Provides a standardized platform for trading nationally.|
|Price Transparency||Transparency can be limited due to physical presence requirements.||Offers better price transparency due to online trading.|
|Market Access||Limited to local or state-specific mandis.||Provides wider market access across the entire country.|
|Payment Process||Payment may involve physical handling and paperwork.||Facilitates online payment and reduces paperwork.|
|Quality Control||Quality checks are conducted by local market committees.||Quality parameters are defined for online trading.|
|Integration||Some states have integrated with e-NAM for wider reach.||Integrates mandis from different states into a common platform.|
|Impact on Farmers||Offers a traditional, localized way of selling produce.||Expands market reach, potentially improving price realization.|
|Modernization||May require modernization to enhance efficiency and transparency.||Introduces technology for modern, efficient trading.|
Read about: GDP of Indian States
Model APMC Act 2003
In 2003, the Union Government of India introduced a Model Agricultural Produce Marketing Committee (APMC) Act with the aim of modernizing and enhancing the efficiency of agricultural marketing systems across the country. This act served as a guideline for states to reform their existing APMC laws and regulations. By 2014, around 16 states had adopted and implemented various aspects of this Model Act, reshaping agricultural trade dynamics.
Key Objectives of the APMC Act:
The primary objectives of the Model APMC Act were threefold:
- Development of Efficient Marketing System: The act aimed to establish a more streamlined and effective marketing system for agricultural produce. This involved creating better channels for the buying and selling of crops, promoting fair pricing mechanisms, and reducing intermediaries’ influence.
- Promotion of Agri-Processing and Exports: The Act also sought to encourage the growth of agricultural processing industries and the export of agricultural products. This was aimed at adding value to the produce and expanding market opportunities beyond national borders.
- Infrastructure Development: The act focused on laying down procedures and systems for building a strong infrastructure to support agricultural marketing. This included the establishment of new markets and ensuring the efficient functioning of existing ones.
One significant change brought about by the Model APMC Act was the widening of the scope for establishing new markets. Traditionally, only state governments could initiate the setup of markets. However, the 2003 Act allowed legal entities like individuals, organizations, and companies, as well as local authorities, growers, and private persons, to apply for the establishment of new markets for agricultural produce. This opened the door for diverse players to contribute to the development of efficient trading avenues.
Furthermore, the Model Act permitted the creation of multiple markets in a single area by different stakeholders such as private individuals, farmers, and consumers. This competition among markets aimed to enhance efficiency, provide better options for farmers and traders, and ultimately improve the agricultural marketing landscape.
An essential aspect of the Model APMC Act was the principle of voluntary participation. Farmers were not compelled to sell their produce exclusively through the APMC-regulated markets. This gave them the flexibility to explore various selling options that best suited their needs.
However, the act introduced a provision that made only those agriculturists who brought their produce to the market area for sale eligible for election to the APMC. This was designed to ensure that those who actively participated in the market’s functioning had a say in its management and decision-making.
Read about: Unemployment Rate in India
List of APMC in India
Here is a comprehensive list detailing the number of Agricultural Produce Market Committee (APMC) markets in each state and union territory (UT) of India. In cases where there are no APMC markets, it indicates that the respective state or UT does not have an APMC Act in place.
|S.No||Name of State/UT||Number of APMC Markets|
|2||A & N Islands||0|
|8||Dadra & Nagar Haveli||0|
|9||Daman & Diu||0|
|14||Jammu & Kashmir||25|
Read about: Indian Economy
What is the role of APMCs?
APMCs, or Agricultural Produce Market Committees, play a significant role in the agricultural marketing system of India. The primary roles and functions of APMCs include:
- Regulation of Markets: APMCs provide a structured marketplace for farmers to sell their produce and for traders, wholesalers, and retailers to purchase agricultural commodities. These markets are meant to ensure fair and transparent transactions, prevent exploitation of farmers by middlemen, and maintain the quality of agricultural products.
- Price Discovery: APMCs facilitate price discovery through open and competitive bidding. This helps farmers get a better idea of the prevailing market prices for their produce, allowing them to make informed decisions about selling their crops.
- Grading and Quality Control: APMCs often have grading and quality control mechanisms in place to ensure that the produce being sold meets certain quality standards. This can help establish trust between buyers and sellers and ensure consistent product quality.
- Market Fee Collection: APMCs levy market fees and other charges on transactions that occur within their market areas. These fees are used to support the maintenance of market infrastructure, facilities, and services.
- Market Infrastructure: APMCs are responsible for developing and maintaining market infrastructure such as market yards, auction platforms, storage facilities, and other necessary amenities to facilitate efficient trading.
- Reducing Middlemen Exploitation: APMCs were established with the intention of reducing the involvement of middlemen in the agricultural supply chain. By providing a direct platform for farmers to interact with traders and consumers, APMCs aim to eliminate unnecessary intermediaries and increase farmers’ income.
- Market Integration: APMCs can facilitate the integration of local markets into regional and national markets. This can lead to better price realization for farmers as their produce becomes accessible to a wider range of buyers.
- Dispute Resolution: APMCs often have mechanisms in place for dispute resolution between buyers and sellers, ensuring that conflicts are resolved fairly and quickly.
Read about: Repo Rate
Agricultural Produce Marketing Committee (APMC) UPSC
The topic of Agricultural Produce Marketing Committee (APMC) holds significant relevance in the context of the UPSC (Union Public Service Commission) examination. It aligns with the UPSC Syllabus, particularly in areas related to Indian Economy, Agriculture, and Governance. A sound understanding of APMC’s role in regulating agricultural markets, price discovery, and its impact on farmers and the economy is crucial for aspirants preparing for the UPSC exam. Aspirants can make their understanding strong in such topics by joining UPSC Online Coaching platforms. Furthermore, practicing APMC-related questions in UPSC Mock Test helps aspirants check their conceptual clarity.
Read More: Banking System in India