APMC

Context

• APMCs from Maharashtra's pulses growing districts have announced an indefinite strike.

About

• An Agricultural Produce Market Committee (APMC) is a marketing board established by state governments in India to ensure farmers are safeguarded from exploitation by large retailers, as well as ensuring the farm to retail price spread does not reach excessively high levels.
• APMCs are regulated by states through their adoption of a Agriculture Produce Marketing Regulation (APMR)

Features of APMC

• Facilitating contract farming model.
• Special market for perishables
• Allowing farmers and private persons to set up their own market.
• Relaxation of licensing norms.
• Single market fee
• APMC revenue to be used for improving market infrastructure.

Note: However, not all states have passed the bill. Some states have passed but neither framed rules nor notified it. Thus, inter-state barriers continue.

Recent Reforms

• Until 2020, the first sale of agriculture produce could occur only at the market yards (mandis) of APMCs.
• However, after 2020 the passing of the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, allowed farmers to sell outside APMC mandis as well as across different states of India.

The Acts

• The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act
• The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act; and
• The Essential Commodities Amendment Act' under which the monopoly of middlemen in APMCs is sought to be abolished and move towards creation of a free market. While cartelization has been a big problem in APMCs, these bills have been criticized by the farmers themselves because of the fear that these laws will lead to degradation of APMCs and eventually Minimum Support Price will be diluted.
• This has led to protests by farmers across India.

https://economictimes.indiatimes.com/news/economy/agriculture/apmcs-in-major-pulses-growing-states-observe-one-day-strike/articleshow/84184602.cms