what is apmc and its functions?

Generally, member and chairman are nominated/elected out of the agents operating in that market. Most of states haven’t abolished system of commission agents as they constitute influential people. 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. These may be just fears, but they aren’t small. The working of the APMC APMC makes sure that intermediaries do not compel farmers to sell their produce at farm gate at throwaway prices. Monopolistic practices and modalities of the state-controlled markets have prevented private investment in the sector. APMCs are intended to be responsible for: 115. shopping mall owners) and food processing companies cannot buy produce directly from a farmer. Pipeline Splits. ORDER N. Kumar, J. The M.D. Farmers can sell their produce to agents or traders under the supervision of the APMC. c) cattle fodder, including oilcakes and other concentrates; Consequently, their role as regulator is undermined by vested interest in lucrative trade. Through their Union they filed an application before the competent authority under Section 20 of the Minimum Wages Act, 1948 for short "the Act". APMCs are marketing boards which have been established by many states to safeguard farmers from large retailers, moneylenders or creditors. State governments may be specifically persuaded to provide policy support for alternative or special markets in private sector. APMCs are associated with trade in certain notified agricultural, horticultural, and livestock products. All primary wholesale assembling markets were brought under the ambit of these Acts. The purpose of these Acts is basically the same i.e. 2. Though the Model Act provides for setting up of markets by private sector, this is not adequate to create competition even within the state since the owner will have to collect fees/taxes on behalf of the APMC in addition to their own charges. In view of the difficulties in attracting domestic capital for the setting-up marketing infrastructure, liberalization in FDI in retail could create possibilities for filling in the massive investment and infrastructure deficit in supply chain inefficiencies. The main differences in Acts of different states/UTs are noted in the following areas:- Exporters, processors and retail chain operators cannot procure directly from the farmers as the produce is required to be channelised through regulated markets and licensed traders. ACT 27] APMC 423 110. Under Constitution of India, agricultural marketing is a state (provincial) subject. There are some States which do not have APMC Act and some have partially amended their Act. The State Agricultural Marketing Board made specifically responsible for: setting up of a separate marketing extension cell in the Board to provide market-led extension services to farmers; promoting grading, standardization and quality certification of notified agricultural produce and for the purpose to set up a separate Agricultural Produce Marketing Standards Bureau. Once a particular area is declared as a market area and falls under the jurisdiction of a Market Committee, no person or agency is allowed to freely carry on wholesale marketing activities. As a last resort, the Economic Survey suggests using Constitutional provisions to create a national common market for agricultural commodities. Union Budget 2014-15 (para 82) and Union Budget 2015-16 (para 33) had suggested the creation of a National Agricultural Market (NAM) as a priority issue. APMC is statutory market committee constituted by State Govt. SK. The APMC system made farmers vulnerable to traders' and marketing agents' price manipulations. Its dynamic functions are of primary importance in promoting economic development. 30 lakhs per mandi will be given as a onetime measure for related equipment and infrastructure requirements. Legal Background of APMCs Sept 13/17 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. Penalties for evasion of payment of fee, etc. Its manager’s responsibility that they should also contribute towards the society by organizing charity functions, sports competitions, a donation to NGO’s, etc. Each state that operates APMC markets (mandis) establish their markets in different places within their borders, geographically dividing the state. The Government of India has considered improving the APMC Act to benefit all parties involved. 3. 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. All wholesale markets for agricultural produce in states that have adopted the Agricultural Produce Market Regulation Act (APMRA) are termed as “regulated markets”. assessment of their Programs and projects. To keep an eye on pricing system and transactions taking place in market in a transparent manner. Registration for market functionaries provided to operate in one or more than one market areas. All this has led to a highly fragmented and high-cost agricultural economy, which prevents economies of scale and seamless movement of agri goods across district and State borders. APMC model act is a sort of roadmap for states for their respective APMC acts which shall be amended. The Economic Survey suggests 3 incremental steps as possible solutions for setting up a national market. They contend that the APMC Yard is their employer within the meaning of Section 2(e) of the Act. Licensing of market functionaries is dispensed with and a time bound procedure for registration is laid down. Some of the salient features of the APMC Model Act 2003 include: However, not all states have passed the bill. Each state has therefore historically had its own APMC Act, with provisions that can vary quite a bit. The Act s the provision of agricultural produce market committees (APMC) that are responsible for the operation of the markets in various states (since agriculture is … To provide market led extension services to farmer. Market Committees permitted to use its funds among others to create facilities like grading, standardization and quality certification; to create infrastructure on its own or through public private partnership for post harvest handling of agricultural produce and development of modern marketing system. It is a non-stock, non … To read about APMC in detail, candidates can check the linked article. under Agricultural Produce Market Committee Act. Provision made for imposition of single point levy of market fee on the sale of notified agricultural commodities in any market area and discretion provided to the State Government to fix graded levy of market fee on different types of sales. 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). APMC Acts provide that first sale in the notified agricultural commodities produced in the region such as cereals, pulses, edible oilseed, fruits and vegetables and even chicken, goat, sheep, sugar, fish etc., can be conducted only under the aegis of the APMC, through its licensed commission agents, and subject to payment of various taxes and fee. In addition, commissioning agents charge commission fees on transactions between buyers and farmers. Further, APMCs play dual role of regulator and Market. Except the States of Jammu and Kashmir, Kerala, Manipur and small Union Territories such as Dadra and Nagar Haveli, Andaman and Nicobar Islands, Lakshadweep, etc. NAM is a “virtual” market but it has a physical market (mandi) at the back end. The list of online APMCs may be seen here. Thus, agricultural markets are established and regulated mostly under the various State APMC Acts. Common throughout the country were problems of local money lenders extorting high amounts of foodgrains from the farmer, at throwaway prices, as interest. CHAPTER XII PENALTIES 114. The farmers’ protest that currently ring-fences Delhi resists resolution as the air is dense with contrary sets of truths and half-truths. Supply is the total amount of a particular good or service available at a given time to consumers. Provisions of the Act and Rules to apply to the Board. 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. Optimization of Resource use and Output Management: An efficient agricultural marketing system leads to the optimization of resource use and output management. One of the measures taken to improve the situation was to regulate the trade practices and to establish market yards in the countryside. d) raw cotton, whether ginned or unginned, and cotton seed; and .State Governments conferred power to exempt any agricultural produce brought for sale in market area, from payment of market fee. all add up to hefty amounts, create market distortions with cascading effects and  strong entry barriers. [1], Until 2020, the first sale of agriculture produce could occur only at the market yards (mandis) of APMCs. However, after 2020 with the passing of the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, which allowed farmers to sell outside APMC mandis as well as across different states of India.[2]. 112. [15], Learn how and when to remove this template message, Tamil Nadu State Agricultural Marketing Board, National Agricultural Cooperative Marketing Federation of India, Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, Department of Agriculture, Co-operation & Farmers Welfare, The Agricultural Produce and Livestock Marketing (Promotion and Facilitation Act), 2017, Ministry of Agriculture & Farmers' Welfare, https://m.economictimes.com/news/economy/agriculture/everything-you-need-to-know-about-the-new-agriculture-bills-passed-in-lok-sabha/articleshow/78183539.cms, "India's new farm bills: What's good, what may not be", "Massive Farmer Protests In Punjab, Haryana, Parts Of UP Over 3 Bills", https://timesofindia.indiatimes.com/city/nashik/hundreds-of-farmers-from-across-state-march-to-delhi-against-new-laws/articleshow/79844316.cms, https://www.hindustantimes.com/india-news/farmers-protest-live-updates/story-KfDN1fQytvP2MQht7MkK8H.html, https://www.livemint.com/news/india/karnataka-assembly-approves-amendment-to-the-apmc-act-11601132366009.html, https://timesofindia.indiatimes.com/city/bengaluru/karnataka-amid-stir-apmc-bill-clears-council-hurdle/articleshow/79655, https://www.thehindu.com/news/national/karnataka/apmc-amendment-bill-adopted-amidst-cong-walkout/article33292850.ece, https://www.deccanherald.com/state/top-karnataka-stories/karnataka-assembly-clears-contentious-apmc-bill-925800.html, Maharashtra State Agriculture Marketing Board homepage, "Maharashtra APMC traders call off strike but Fadnavis faces uphill task to scrap act", http://market.ap.nic.in/html/Market_Rules.html, Maharashtra State Agriculture Marketing Board [MSAMB]: Homepage, http://mrunal.org/2013/08/food-processing-nuisance-of-apmc-acts-commission-agents-marketing-of-agricultural-produce-issues-and-constrains-for-gs-mains.html, https://en.wikipedia.org/w/index.php?title=Agricultural_produce_market_committee&oldid=1000535276, Articles needing additional references from January 2017, All articles needing additional references, Creative Commons Attribution-ShareAlike License. An efficient agricultural marketing is essential for the development of the agriculture sector as it provides outlets and incentives for increased production and contribute to the commercialization of subsistence farmers. Constitutional Provisions regarding Agricultural markets Power to borrow. States also constitute a Market Board which supervises these market committees. The Economic Survey 2014-15 emphasizes on the need for a national common agricultural market (a Budget Announcement of 2014-15) and identifies un-integrated and distortion ridden agricultural market as the one of the most striking problems in agriculture growth. This Act became the model for enactment in other parts of the country. Agricultural Produce Market Committees (APMC) is the marketing board 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. After all, this is the purpose of the APMC Act and the State agricultural marketing boards, apart from regulating market transactions in terms of fair price discovery and fair settlement of payment. Statutory levies/mandi tax, VAT etc. Thus, inter-state barriers continue. States has adopted Model APMC in piecemeal manner as per vested interests of various pressure groups. 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. Suggestions in Economic Survey 2014-15 to Create a National Common Market in Agricultural Commodities: Functions of APMC are: To promote public private partnership in the ambit of agricultural markets. Let me also tell you that there is variation in the performance, efficiency and effectiveness of … Prior to 2020, Farmers couldn’t sell produce outside the APMC mechanism. 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). The Maharashtra State Agricultural Marketing Board (MSAMB)[11] runs 295 APMCs in Maharashtra, under the APMC Act enacted by the Government of India. The Preamble of the Act is to provide for development of efficient marketing system, promotion of agri-processing and agricultural exports and to lay down procedures and systems for putting in place an effective infrastructure for the marketing of agricultural produce. The government has granted 148 Direct Marketing Licenses, of which 91 are for fruits and vegetables. NAM is proposed to be achieved through the setting up of a common e-platform to which initially 585 APMCs selected by the states will be linked. Most APMCs have a market where traders and other marketing agents are provided stalls and shops to purchase agriculture produce from farmers. Further, multiple licences are necessary to trade in different market areas in the same State. The APMC Act treats APMC as an arm of the state and the market fee as the tax levied by the state, rather than as a fee charged for providing services, which acts as a major impediment in creating a national common market. their role vary from advisory to binding. 1966: KAR. The current APMC reforms by Prime Minister Modi's government has not only met 20+ years of the need for the reform, it has also shown a vision in not disbanding the APMCs but removing their … formulation exhibiting amazing neurological support, as formula was demonstrated in a study published in The Journal of Alzheimer's Disease. However, “inter-state trade and commerce”, is covered in the entry 42 of the Union List and hence comes under the purview of the Union / Central Government. From the government’s standpoint, the elephant in the room would be if the farmers insist on an additional demand: Making MSP a legal right. Separate provision is made for notification of ‘Special Markets’ or ‘Special Commodities Markets’ in any market area for specified agricultural commodities to be operated in addition to existing markets. There will be no compulsion on the growers to sell their produce through existing markets administered by the Agricultural Produce Market Committee (APMC). Demarcation of functions between Director Marketing and Board – Administrative structure for the implementation structure of the Act vary from state to state in terms of functions assigned. of market committees and number of members therein, the appointment of committee members etc. APMCs charge a market fee from buyers, and a licensing fee from the commissioning agents who mediate between buyers and farmers. a) the products of any industry where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest, and imported goods of the same kind as such products; Consequently, in a market area, more than one market can be established by private persons, farmers and consumers. Commission agency in any transaction relating to notified agricultural produce involving an agriculturist is prohibited and there will be no deduction towards commission from the sale proceeds payable to agriculturist seller. APMC market yards are state governments' set-up spot markets (commonly called mandis) formed to regulate agriculture transactions traded between buyers and sellers and ensure that farmers are offered fair prices for their produce in a transparent manner. System of Authority Well-defined lines of command, the delegation of suitable authority and responsibility at all levels of decision-making . APMC operations are hidden from scrutiny as the fee collected, which are at times exorbitant, is not under State legislature’s approval. For the benefit of IAS aspirants, we are providing the salient features of the Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act or APLM Act, 2017 and its …

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