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APMC Full Form - Agricultural Produce Market Committee

 Agricultural Produce Market Committee

Agricultural Produce Market Committee

  • APMC Full form is Agricultural Produce Market Committee. APMC was set-up by the government of every state to provide a platform for the farmers to sell their agricultural produce. Such committees ensured that greedy intermediaries wouldn’t be ready to exploit the farmers by paying them a petty amount for his or her agricultural produce and later sell them at higher prices.
  • The farmers never got the advantage of their products and were compelled to require up more loans raking up huge debts within the process. The APMC marketing initiative has helped farmers across different states.
  • A definite need to improve the plight of the farmers was the reason that drove the government to bring a change by having APMC started within the 1950s. It had been to make sure
    • There is no exploitation of the farmers.
    • The farmers were ready to get a good price for his or her produce.
    • The APMC provided many benefits to the farmers aside from the above mentioned two reasons for its set-up.
    • In the development of market yards to facilitate both the farmers and buyers.
    • Provide storage facilities like godowns etc.
    • Arrange for farmer markets to permit the farmers to sell their produce to the consumers directly.
    • Help control price fluctuations.
    • It facilitates auctions of the farmer’s produce.

Issues in operating in an APMC market

  • The farmer will need APMC permit
  • Needs to own a store or warehouse in that market
  • A limited number of options and expensive also
  • Heavy investment has been made by the intermediaries
  • The weighman, paddlers and hamals need to get a license to work within the market.
  • We have led the bribe culture for procuring a license i.e. APMC permit and getting a store within the APMC market etc.
  • The problems that were plaguing the previous APMC act were
    • Regular elections aren't held and hence mostly travel by the bureaucrats.
    • The transactions run within the market are subject to market tax also as cess.
  • Though several measures put across to rectify a number of the problems by declaring minimum support prices for
    • Cereals
    • Pulses
    • Oilseeds crops
  • But fruits and vegetables didn’t come under this support price.

The New APMC act allows

  • Farmers can now sell farmers-produce directly without having to bring it to the APMC market.
  • The right to sell to any buyer he wants.
  • If the farmer doesn’t sell within the APMC market, then he wouldn’t get the prospect of running within the APMC election and be a part of the APMC marketing committee.
  • Other farmers, exporters, graders, processors, packers can now directly buy from the farmers and need not attend the APMC market.
  • State monopoly are going to be brought down and pave the way for private yards to run.
  • Permits are going to be provided for private yards.
  • There will direct-purchase centers for the farmers to trade and sell their produce.
  • Allowing public-private partnership within the management and development of such markets.
  • Better handling of the cold storage, pre-cooling facilities right to the pack houses for the farmer’s produce.
  • Increasing the responsibilities for the APMC.


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