APMC-AGRICULTURE PRODUCE MARKET COMMITTEE
An Agricultural Produce Market Committee (APMC) is a marketing board established by state governments in India to protect farmers from exploitation by large retailers, intermediaries and ensuring the farm to retail price spread does not reach excessively high levels.
APMCs are regulated by states through their adoption of an Agriculture Produce Marketing Regulation (APMR) Act.
- Ensure that farmers are not exploited by intermediaries and/or money lenders who force farmers to sell their produce at the farm or door for an extremely low price.
- All food produce should first be brought to a market yard and then sold through auction.
- Each state that operates APMC markets (mandis) establishes their markets within their borders, geographically dividing the state. Farmers are required to sell their produce via auction at the mandi in their region.
- Traders require a license to operate within a mandi. Wholesale and retail traders (e.g. shopping mall owners) and food processing companies cannot buy produce directly from a farmer.
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.
APMC Model Act, 2003
Some of the salient features include:
- Facilitating contract farming model.
- Special market for perishables
- Allowing farmers and private persons to set up their own market.
- Relaxation of licensing norms.
- Single market fee
- APMC revenue to be used for improving market infrastructure.
However, not all states have passed the bill. Some states have passed but neither framed rules nor notified it. Thus, inter-state barriers continue.
Frequently Asked Question (FAQ)
What is APMC?
It is Agricultural Produce & Livestock Market Committee established under the provisions of APLM Act.
What is APMC Yard?
Agricultural Produce Market Committee Yard / Regulated Market Committees (RMC) Yard is any place in the market area managed by a Market Committee for the purpose of regulation of marketing of notified agricultural produce and livestock in physical, electronic or other such mode.
How many APMC linked to eNAM?
Currently there are 1000 markets that are linked to the eNAM network from 18 states and 3 UT’s.
How APMC benefitted from eNAM?
- Free Software for System integration/ Automation of recording transactions
- Complete information on trade
- Real time arrival recording
- Analyze price trends, arrival and trading activities
- Automated record of financial information
- Reduction in man-power requirement