A) WHAT ARE APMCS?
- Agricultural Produce Market Committee (APMC) is a statutory market committee constituted by a State Government in respect of trade in certain notified agricultural or horticultural or livestock products, under the Agricultural Produce Market Committee Act issued by that state government.
B) Intended functions of APMCs
- Ensuring Transparency in pricing system and transactions taking place in market area
- Providing market-led extension services to farmers
- Ensuring payment for agricultural produce sold by farmers on the same day
- Promoting agricultural processing including activities for value addition in agricultural produce
- Publicizing data on arrivals and rates of agricultural produce brought into the market area for sale
- Setting up and promoting public private partnership in the management of agricultural markets
C) Typical amenities available in or around the APMCs are:
- Auction halls, weigh bridges, godowns, shops for retailers, canteens, roads, lights, drinking water, police station, post-office, bore-wells, warehouse, farmers amenity center, tanks, Water Treatment plant, soil-testing Laboratory, toilet blocks, etc.
D) APMC acts run on two principles:
- Ensure that intermediaries (and money lenders) do not compel farmers to sell their produce at the farm gate at throwaway prices, meaning the farmers are not exploited
- All food produced should first be brought to the market yard to be sold through auction, farmers get handsome profits
E) Under APMC Acts:
- A State is geographically divided and Market/ Mandis are established at different places within the states.
- Farmers bring their produce to sell it through through the auction.
- To operate in Mandi, a trader has to get a license.
- Wholesale, retail traders (e.g. shopping mall owner) or food processing company etc cannot buy farm output directly from farmer. They’ve to get it through the Mandi.
F) Old APMC Acts: Problems?