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11. Final Report of Committee of State Ministers, in-charge of Agriculture Marketing to Promote
Reforms

The State Ministers had recommended the amendment of APMC Act and the substitution of
the system of licensing of traders/commission agents with a progressive system of registration
with open and transparent criteria. The need to allow private sector to own, operate and manage
markets was also underscored.
12. Budget 2017-2018
It was stated that market reforms will be undertaken and the states would be urged to denotify
perishables from APMC to give opportunity to farmers to sell their produce outside the APMC
and get better prices

13. Standing Committee on Agriculture, Ministry of Agriculture and Farmers Welfare (Department
of Agricultural, Cooperation and Farmers Welfare) : Agriculture Marketing and Role of Weekly
Gramin Haats(2018-19)

The Committee observed that APMC market across the country are not working in the interest
of farmers due to various reasons such as limited numbers of traders in APMC markets thereby
reducing competition, cartelization of traders, undue deduction in the name of market fee and
commission charges, etc. The Committee was of the view that there is need to create alternative
platform for marketing of agriculture produce near the production centre so that farmers can
get remunerative prices for their produce. These marketing platforms may also provide them
agriculture extension services to the farmers which will further help them to lower the input cost
for farming.

14. Several Economic Surveys have expressed concern at functioning of the APMCs and the fact that
they sponsor monopolies. Specifically, Economic Surveys for the years 2011-12, 2012-13, 2013-
14, 2014-15, 2016-17, 2019-20 focused on the reforms required in this context. The suggestions
on marketing of agricultural produce include the need to provide a choice to the farmers to sell
their products directly to a processing factory or the private sector, development of agriculture
marketing infrastructure, amendment of the State APMC Acts and the Essential Commodities
Act to ensure barrier-free storage and movement of agricultural commodities.

15. Parliament enacts three laws that usher in agricultural reforms
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services
Act, 2020

The Essential Commodities(Amendment) Act, 2020

WAY FORWARD

7.71 The objective of inclusive development in India cannot be realized without the development
of rural sector which crucially depends on agriculture. Agriculture and allied activities engage
almost half of India’s workforce and contributes close to 18 per cent of the gross value added of