Ananya Gupta
September 30, 2023 01:27
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The full form of APMC is Agricultural Produce Market Committee. Learn how APMCs regulate agricultural trade, ensure fair prices for farmers, and contribute to organized market systems. Explore the functions, challenges, and reforms associated with APMCs in India.
APMC stands for “Agricultural Produce Market Committee.” It refers to a statutory body established by state governments in India to regulate and oversee the marketing and trade of agricultural produce within designated market areas. APMCs are responsible for ensuring fair practices in agricultural trade, providing a platform for farmers to sell their produce, and preventing exploitation by intermediaries.
The Agricultural Produce Market Committee (APMC) system is a crucial regulatory framework that operates at the state level in India to oversee agricultural marketing and trade. The APMC Mandis, or market yards, play a vital role in ensuring fair practices and protecting farmers’ interests while trading their agricultural and livestock products.
The APMC system aims to eliminate the exploitation of farmers by intermediaries and creditors, as well as provide them with a platform to sell their produce at fair prices. This regulatory mechanism offers several benefits:
Overall, the APMC system serves as an important mechanism to support farmers’ welfare, promote fair agricultural trade practices, and create a more transparent and equitable marketplace for agricultural products.
| APMC Full Form | |
|---|---|
| Full Form | Agricultural Produce Market Committee |
| Definition | APMCs are organization established in India that regulate the buying and selling of agricultural products. |
| Objective | APMCs are set up to protect farmers from exploitation, ensure fair prices, and regulate the trade of agricultural produce. |
| Functions | APMCs facilitate the entry of farmers’ produce into the market, determine prices, oversee the buying and selling process, ensure proper operations, and provide facilities. |
| Challenges | APMCs often face challenges such as price undercutting by emergency buyers, involvement of intermediaries, and the need for modernization due to system inefficiencies. |
| Reforms | Some states have taken significant steps towards agricultural market reforms, including initiatives like the introduction of online trading platforms such as e-NAM. |
The background of the Agricultural Produce Market Committee (APMC) in India is rooted in the historical need to regulate agricultural markets and protect the interests of farmers. The APMC system was introduced to address the challenges faced by farmers in selling their produce, prevent their exploitation by intermediaries, and ensure fair pricing. Here’s a more detailed background on the APMC system in India:
Colonial Era and Market Regulation: During the colonial era, agricultural markets were established with the objective of ensuring a consistent supply of raw materials, particularly cotton, for British industries. The British government aimed to secure a stable supply of raw cotton for textile mills in Manchester, UK. As a result, coordinated markets for agricultural produce began to take shape.
Hyderabad Residency Order and Early Acts: The foundation of the APMC system can be traced back to the Hyderabad Residency Order of 1886, which established the first coordinated market. The Grain Market and Berar Cotton Act of 1887 allowed British residents to declare markets for agricultural products and set up commissions to regulate these markets. These early acts laid the groundwork for market regulation.
Recommendations for Organized Markets: In 1928, the Royal Agricultural Commission recommended the establishment of organized markets to improve trade practices and infrastructure for agricultural products in India. This recommendation aimed to enhance market properties and trade methods for the benefit of farmers.
Model Law and Post-Independence Developments: The Indian government drafted a model law for market regulation in 1938, which was distributed to all states. However, significant progress was made only after India gained independence. During the 1960s and 1970s, most states enacted the Agricultural Produce Markets Regulation (APMR) Acts. These acts were designed to cover critical wholesale assembly markets.
Creation of APMC and Farmer Protection: The APMC system was established to address the challenges faced by farmers, including distressed sales due to exploitation by intermediaries and creditors. APMCs were established in various market areas to enforce regulations that prevented farmers’ exploitation and ensured fair pricing for their produce.
Modernization Efforts and United National Agriculture Market (eNAM): In recent years, there have been efforts to modernize the APMC system and enhance market efficiency. The Union Budget of 2015 proposed the creation of a United National Agriculture Market (eNAM) with the support of state governments and NITI Aayog. eNAM aims to provide a unified digital platform for agricultural trade across the country.
The Agricultural Produce Market Committee (APMC) system in India has several key objectives aimed at benefiting farmers and ensuring fair practices in agricultural trade. The primary objectives of APMCs include:
The Model Agricultural Produce Market Committee (APMC) Act of 2003 is a law designed to regulate the buying and selling of agricultural produce in India. This act serves as a framework for establishing market committees at the state level, known as APMCs, which oversee the functioning of agricultural markets.
The main objectives of the Act are to ensure fair trade practices, eliminate intermediaries, and provide a platform for farmers to directly sell their produce to buyers. APMCs are responsible for creating an organized marketplace where farmers can sell their crops, ensuring transparent transactions, and preventing exploitation.
Under the Act, APMCs have the authority to license and regulate traders, commission agents, and other intermediaries involved in the agricultural trade. They also provide facilities like market yards, auction platforms, and warehouses to facilitate the trade of agricultural commodities.
The Act emphasizes transparency in pricing and aims to prevent unfair practices. It promotes competition among buyers, which helps farmers get better prices for their produce. However, the Act has faced criticisms as well. Some argue that the mandatory involvement of APMCs limits farmers’ options and can lead to inefficiencies and corruption.
Over time, there have been discussions about reforming the APMC Act to provide more flexibility to farmers and encourage private investment in agricultural marketing. These discussions often revolve around allowing farmers to sell their produce directly to consumers and businesses outside of the APMC framework, which could potentially lead to better price realization for farmers.
The APMC Act, while having its intended benefits, has also faced several issues and criticisms over the years. Some of the key issues include:
National Agriculture Market (NAM) and its electronic trading platform, e-NAM. This platform plays a crucial role in connecting various APMC mandis (Agricultural Produce Market Committees) across India to establish a unified national market for agricultural products. It simplifies the process for both buyers and sellers by offering a centralized platform for all APMC-related information and services. Some key points you’ve highlighted include:
The APMC (Agricultural Produce Market Committee) system in India has several shortcomings and criticisms, which have led to calls for reform and modernization of agricultural marketing. Some of the key shortcomings include:
The APMC (Agricultural Produce Market Committee) is a significant topic that can appear in the UPSC (Union Public Service Commission) examinations, particularly in the context of agricultural and economic policies. Here’s a concise overview that you might find helpful for your preparation:
Agricultural Produce Market Committee (APMC):
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