Agricultural Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

[op-ed snap] An APMC tale: Why market design mattersop-ed snap


  1. Theme: The APMC legislation has in effect created fragmented markets—small trading zones that can quite easily be captured by trader cartels
  2. The op-ed highlights issues with good intentions but bad implementation. Case in point are the Agricultural produce market committees
  3. Issue 1: Even institutions that are set up with the best of intentions are often captured by the special interest groups
  4. Issue 2: These interest groups then have a strong vested interest in maintaining the existing way of doing things rather than support reform
  5. Issue 3: Only good intentions don’t work out in long run, we need to have a deep understanding of the incentive structure that is being put in place
  6. Challenge: The APMC legislation has in effect created fragmented markets – small trading zones that can quite easily be captured by trader cartels.

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