Lok Sabha Question No. 4258 (UNSTARRED), answered on 2017-03-28
Subject: Amendment in Agriculture Produce Market Committee Act
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR, PARBHUBHAI NAGARBHAI VASAVA, VISHNU DAYAL RAM

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.4258

TO BE ANSWERED ON THE 28 TH   MARCH, 2017

## AMENDMENT IN AGRICULTURE PRODUCE MARKET COMMITTEE ACT

4258.     ADV. NARENDRA KESHAV SAWAIKAR: SHRI PARBHUBHAI NAGARBHAI VASAVA: SHRI VISHNU DAYAL RAM:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether it is a fact that Agriculture Produce Market Committee (APMC) was established with the main objective to prevent exploitation of farmers by intermediaries and if so, the details thereof;
- (b) whether it is a fact that APMC mechanism have failed to yield the desired results;
- (c) if  so,  whether  the  Government  has  laid  down  any  new  system  for  improving  the  said marketing system and if so, the details thereof;
- (d) whether  the  Government  is  considering  to  bring  second  edition  of  ideal  Agriculture Produce Market Committee Act (APMCA) and if so, the details thereof;
- (e) whether  the  purpose  of  Agriculture  Produce  Market  Committee  Act  is  to  increase  the income of the farmers by various measures like bringing contract farming out of the law and if so, the details thereof; and
- (f) the  steps  taken  by  the  Government  to  strengthen  the  Agriculture  Produce  Market Committees in various States of the country and to protect the farmers from exploitation?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

- (a)  &  (b)  States  mostly  during  sixties  and  seventies  legislated  Agricultural  Produce  Market Committee  (APMC)  Acts  with  the    objectives  to  ensure  reasonable  gains  to  the  farmers  by creating  environment  in  markets  for  fair  play  of  supply  and  demand  forces,  regulate  market practices and attain transparency in transactions.    Over the time, these markets have become restrictive,   monopolistic and thus failed to achieve these objectives fully.
- (c): In order to promote competition and transparency  in trading, reduce market asymmetry and  ensure  better  price  discovery  to  the  farmers,  Government,  in  addition  to  advocacy  of reforms   in   States'   Marketing  Laws,  has  launched the National Agriculture Market (e-NAM)

Scheme.   Under this path breaking program, 361 mandis have already been integrated in 11 States for online trading of agri-produce which would ensure informed bidding by buyers and remunerative prices to farmers commensurate to quality of their produce .

(d): Yes, Madam. The salient features of the proposed model APMC Act, 2017 are placed at Annexure .

(e): In order to provide better price realization to the farmers and reduce post-harvest losses through integration of fruits and vegetable growers with agro- processing units, Union Finance Minister in budget speech for 2017-18 has announced to formulate a 'Model Contract Farming Act'. The Government has constituted a Committee in Department of Agriculture, Cooperation and Farmers Welfare to formulate a Model Contract Farming Act for adoption by States/UTs.

(f): APMCs are eligible for financial assistance under various schemes of the department such  as  Rashtriya  Krishi  Vikas  Yojana  (RKVY),  Mission  for  Integrated  Development  of Horticulture  (MIDH),  Agricultural  Marketing  Infrastructure  (AMI)  a  sub  scheme  of  Integrated Scheme for Agricultural Marketing (ISAM). In addition to it the Government is providing financial assistance  of  Rs.  30  lakh  to    each  APMC  Mandi  integrated  with  e-NAM  to  strengthen  the hardware  and  software  infrastructures  including  putting  in  place  weigh  bridges  and  assaying labs.

## Salient features of draft model APMC act 2017

(i) Abolition of fragmentation of market within the State/UT by removing the concept of notified market area in so far as enforcement of regulation by APMC is concerned (State level single market).

(ii)   Full democratization of Market Committee and State/UT Agricultural Marketing Board.

(iii) De-intermediation of  food supply chain by integration of farmers with processors, exporters, bulk retailers and consumers

(iv) Clear demarcation of the powers and functions between Director of Agricultural Marketing and  Managing  Director  of  State/UT  Agricultural  Marketing  Board  with  the  objective  that  the former will have to largely carry out regulatory functions, while the latter will be mandated with developmental responsibilities under the Act.

- (v)  Creation  of  a  conducive  environment  for  setting  up  and  operating  of  private  wholesale market yards  and farmer consumer market yards  so as to enhance competition for the farmer's produce, to the advantage of the latter.
- (vi)  Promotion of direct interface between farmers and processors/ exporters/ bulk-buyers/ end users  so  as  to  reduce  the  price  spread  bringing  advantage  to  both  the  producers  &  the consumers.

(vii)  Enabling  declaration  of  warehouses/  silos/  cold  storages  and  other  structures/  space  as market sub -yard to provide better access/ linkages to the farmers.

(viii)  Giving freedom to the agriculturalists to sell their produce to the buyers and at the place & time of their choice, to whom so ever and wherever they get better prices.

- (ix)    Promotion  of  e-trading  to  enhance  transparency  in  trade  operations  and  integration  of markets across geographies.
- (x)  Provisions  for  single  point  levy  of  market  fee  across  the  State  and    unified  single  trading licence to realise cost-effective transactions.
- (xi)  Promotion  of  national  market  for  agriculture  produce  through  provisioning  of  inter-  state trading licence, grading and standardization and quality certification.

(xii) Rationalization of market fee & commission charges.

(xiii) Provision for Special Commodity Market yard(s) and Market yard(s) of National Importance (MNI).

(xiv) Licencee of private market yard, market sub-yard, electronic trading  and direct marketing have been placed at the same level playing field with the market yards of the APMCs.

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