Introduction (Origin)

APMC Problems?

APMC Reforms?

Since agriculture is a state subject, ultimately state governments have to reform their archaic laws. Union Government already circulated a model APMC Act, but most states have implemented it only half-heartedly. Hence, Both Niti3YR & ES16 have recommended following:

  1. Replace the APMC ‘licensed’ intermediary system with open registration backed by bank guarantees. So that entrepreneurs without political clout, can also enter this game.
  2. Such Non-APMC registered buyers should have right to
    • Setup alternate marketplace.
    • Buy produce directly from the farmer.
  3. This will create competition and pave the way for the farmer to receive lucrative prices.
  4. For small farmers it is neither feasible nor profitable to take their produce to markets, so governments should allow for “aggregators” who would collect produce from farmers for sale in competitive marketplaces.
  5. Exempt perishables from the APMC acts.
  6. Promote farmer cooperatives for direct retailing to customers.
  7. Encourage contract farming.

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