AGRICULTURAL MARKETING REFORMS IN INDIA: INTERVENTION OF MODEL APMC ACT-2003

Organized marketing of agricultural commodities is being promoted in the country through a network of regulated markets. Most of the States and Union Territories have enacted legislations (the Agriculture Produce Marketing Committee [APMC] Act) to provide for regulation of agricultural produce markets. Seventeen States/ UTs have amended their APMC Acts and the remaining are in the process of doing so. There are 7157 regulated markets in the country as on 31March 2010. The country has 21,221 rural periodical markets, about 15 per cent of which function under the ambit of regulation. The advent of regulated markets has helped mitigate the market handicaps of producers/ sellers at wholesale assembling level. Internet connectivity is being provided to important agricultural markets in the country to establish a nationwide information network for speedy collection of prices and market-related information. Presently, wholesale prices of 300 commodities and about 2000 varieties are being reported on the Agricultural Marketing Information Network (AGMARKNET) portal from more than 1900 markets. But rural periodic markets in general and tribal markets in particular have remained outside the ambit of the APMC Act. Other major initiatives include setting up of terminal market complexes (TMC) for fruits, vegetables, and other perishables in important urban centres in those States which provide for market reforms as per the Model Act. These markets will provide state-of-the-art infrastructure facilities for electronic auction, cold chain and logistics, and operate through primary collection centres conveniently located in producing areas to allow easy access to farmers. With this background the present study is aimed to study the APMC model act reforms in various states and also to issues and avenues related to horticulture produce.   The study made based on secondary data obtained from many government reports, journals, books and other internet sources. The study result reveals that model legislation provides for the establishment of Private Markets/Yards, Direct Purchase Centres, Consumer and Farmers Markets for direct sale and promotion of Public Private Partnership in the management and development of agricultural markets in the country. The Act also provides for the constitution of State Agricultural Produce Marketing Standards Bureau for promotion of Grading, Standardization and Quality Certification of agricultural produce. The study also highlights that reforming institution improving marketing conditions and encouraging private sector participation, requires reforming the Agricultural Produce Marketing Committee (APMC) Act and abolishing the Essential Commodities Act (ECA). The issues related to horticulture sector, Suggestions have been made that fruits and vegetables should be exempted from Agricultural Produce Marketing committee Act (APMC) regulations and that the grower should be allowed to sell directly to food processors, consolidators or retailers. These steps are particularly relevant for the high value segment that is currently hostage to high post harvest losses and weak farm-to-firm linkages.