What is meant by APMC market?

What is meant by APMC market?

An Agricultural Produce Market Committee (APMC) is a marketing board established by state governments in India to ensure farmers are safeguarded from exploitation by large retailers, as well as ensuring the farm to retail price spread does not reach excessively high levels.

What does APMC stand for?

Agricultural Produce Market Committee (APMC) 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.

What happens in APMC market?

Under the APMC Act, the states can establish agricultural markets, popularly known as mandis. The sale of agricultural commodities can occur only in the mandis through auction. The sales process in mandis is regulated through commission agents (CAs) who mediate between the farmers and traders.

What is the function of APMC?

APMC RESPONSIBILITIES AND FUNCTIONS: Ensuring transactions taking place in the market area. Focus on providing complete transparency in the pricing system. Ensuring payment for the agricultural produce that is sold by the farmers, on the same day.

Is APMC good for farmers?

Why APMC Act is Essential for Farmers? The legislation of 1964 had undergone several modifications over the years to protect farmers against abuse and exploitations by middlemen at the time of price discovery, weighing and measurement of produces or while making payment after the transaction.

What is Mandis in agriculture?

Under the mandi system farmers bring paddy and wheat to the shop of the commission agent (arhtia) in regulated Agricultural Produce Marketing Committee (APMC), or mandi, yards for sale. Of course, larger farmers have benefitted disproportionately more than smaller ones.

How does a mandi work?

Under the mandi system farmers bring paddy and wheat to the shop of the commission agent (arhtia) in regulated Agricultural Produce Marketing Committee (APMC), or mandi, yards for sale. Certainly, as the government constantly reminds us, commission agents have also been key beneficiaries of this system.

Why is APMC bad?

Due to poor market infrastructure, more produce is sold outside markets than in APMC mandis. The net result was a system of interlocked transactions that robs farmers of their choice to decide to whom and where to sell, subjecting them to exploitation by middlemen.

What is mandi system in agriculture?

Under the mandi system farmers bring paddy and wheat to the shop of the commission agent (arhtia) in regulated Agricultural Produce Marketing Committee (APMC), or mandi, yards for sale. This assured purchase at MSP has been the main source of income support for Punjab’s farmers.

What are the drawbacks of APMC?

Fees of trading in APMC went high. There is a limited number of APMC mandis which leads to insufficient market options for farmers to sell their produce. Even after imposing and collecting high fees, the infrastructure of the APMC was inadequate and lead to a high wastage of harvests.

Why Mandis are necessary in India?

Agricultural trade is made of complex supply chains, numerous agents, and high levels of commodity specificity. Mandis provide a regulated market space that reduces some of the challenges and encourages fair competition, as well as synergies between arhatiyas and farmers.

Do farmers pay mandi tax?

Mandi tax was the lowest in Kerala at 0.07%. In Karnataka, agricultural products attract a 3.5% commission charge. However, the farmers assert that the private markets will impose their own tax despite exemptions provided by the government, which will most likely profit the trader and private companies.

What does APMC stand for in Indian economy?

UPSC Indian Economy & Agriculture Notes 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.

What are APMCs and what do they do?

APMCs are marketing boards which have been established by many states to safeguard farmers from large retailers, moneylenders or creditors. These were formed to overcome these challenges. Under the APMC regulations, all produce must be sold in markets through auctions.

How does the APMC Act affect the Common Market?

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.

Who is the agricultural produce market committee ( APMC )?

Agricultural Produce Market Committee (APMC) is a system operating under the State Government since agricultural marketing is a State subject that has Yards/Mandis in the market area that regulates the notified agricultural produce and livestock.