The Agricultural Ministry came out with an amended Model APMC Act that brings significant changes in the existing rule proposed in 2003. Fresh changes include several steps to stop fragmentation of agricultural markets by establishing a common fee and licensing for statewide agricultural marketing. The model AMPC also abolishes the earlier concept of notified area that caused fragmentation of the agricultural markets within a state.
Centre has already asked States to modify their APMC Acts by introducing a single license and single point of levy of market fee at the State level. Objective is to make a gradual migration towards a single license and single point of levy of market fee at the national level. The already introduced e-NAM platform for nationwide trading is a first step.
Another provision for market integration is the abolition of the notified area in trading.
Besides the above market unification attempts within states and at the national level, the modification proposes private sector in wholesale trading. Both private wholesale market yards and farmer consumer market yards should be promoted to enhance competition.
The reform measures under APMC was declared by the Agriculture Minister Radha Mohan at State Agriculture Ministers meeting on increasing farmers’ welfare on Monday.
The Minister added that it is essential for the mandis to adopt new marketing strategies to address the demands for marketing of increased and diversified agricultural marketable surplus.
Centre is continuously promoting states to liberalize agricultural markets by promoting competition and unification of the fragmented markets. Agriculture being the state subject, the Centre’s policy prescriptions are finding tough going at the state level.
