Agricultural Produce and Livestock Marketing (Promotion and Facilitating) Act (APLM), 2017
The Agriculture Ministry unveiled the draft law in April.
It would be a major agri-reform as it provides wider options for farmers to sell produce and get better prices. At present, farmers can sell their produce at regulated APMC (Agriculture Produce Marketing Committee) mandis only. They are subjected to different kinds of fees.
Its implementation will help in doubling farmers’ income by 2022.
The purpose is to create a single agri-market where with single licence one can trade agri-produce as well as livestock. The government’s aim is to set up a wholesale market at every 80 km. The new law will end the monopoly of APMC and allow more players to set up markets and create competition so that farmers can discover prices and sell their produce accordingly. APMC will be one of the markets. It will have no regulatory powers. The law promotes multiple market channels like private market yards, direct marketing and even godowns and silos can be notified as markets.
The law seeks to set a separate authority to regulate all agri-markets including APMC and provide trading licences.
It caps market fee (including developmental and other charges) at not more than 1 per cent for fruit and vegetables, and 2 per cent for foodgrain. It caps commission agents’ fee at not more than 2 per cent for non-perishables and 4 per cent for perishables.
Other proposals in the model APMC Act include promotion of national market for agriculture produce through provisioning of inter-State trading licence, grading and standardisation and quality certification, rationalisation of market fee and commission charges, provision for special commodity market yard and promotion of e-trading to increase transparency.
The model Act also calls for full democratisation of market committee and State/UT Marketing Board.
Question in Previous Year:
Q. There is also a point of view that Agricultural Produce Market Committees (APMCs) set up under the State Acts have not only impeded the development of agriculture but also have been the cause of food inﬂation in India. Critically examine. (GS 3, 2014)