Agricultural produce market committee

An agricultural produce market committee (APMC) is a marketing board established by a state government in India.

APMC operate on two principles:

Each state which operates APMC markets geographically divide the state and markets (mandis) are established at different places within 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.

Some of the salient features of the APMC Model Act 2003 are as follows 1) Facilitates Contract farming model 2) Special market for perishables 3) Farmers, private persons can setup own market 4) Licensing norms relaxed 5) Single market fee 6) 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. Further, Union Budget 2015 proposed to create United National Agriculture Market with the help of State Government and NITI Ayog .

The state government of Karnataka has created APMCs in many towns to enable farmers to sell their produce at reasonable prices. Most APMCs have a market where traders and other marketing agents are provided stalls and shops to purchase agriculture produce from farmers. Farmers can sell their produce to agents or traders under the supervision of the APMC.

Farmers cannot sell produce outside the APMC mechanism. However, the government is now encouraging direct selling through 'Rautu Bazar' or to supermarkets directly. The present APMC system makes farmers vulnerable to traders' and marketing agents' price manipulations. The Government of India is considering improving the APMC Act to benefit all parties involved.

The Maharashtra State Agricultural Marketing Board runs 295 APMCs in Maharashtra, under the APMC Act enacted by the Government of India. In July, 2016, the Maharashtra State Government removed fruits and vegetables from the purview of the APMCs. The state government has urged the farmers to directly bring their produce for sale in Mumbai. Of the 307 APMCs in the state, 219 are operating, The government has granted 148 Direct Marketing Licenses of which 91 are for fruits and vegetables.The Pune APMC, meanwhile, appealed to the farmers from the state as well as from outside to bring their produce to the market and sell those directly..

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