Lok Sabha Question No. 4127 (UNSTARRED), answered on 2026-03-17
Subject: Regulatory oversight of APMCs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. Amol Ramsing Kolhe

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

## LOK SABHA UNSTARRED QUESTION NO. 4127

TO BE ANSWERED ON THE 17 TH  MARCH, 2026

## REGULATORY OVERSIGHT OF APMCs

4127. DR. AMOL RAMSING KOLHE:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a) the current status of governance and regulatory oversight of Agricultural Produce Market Committees (APMCs) including the total number of functional APMCs and frequency of audits conducted during the last three years in the country, State/UT-wise particularly Maharashtra;

(b)  whether  the  Government  has  evaluated  complaints  related  to  lack  of  transparency, cartelisation, fee-related disputes and decision-making without farmer consultation in certain APMCs in Maharashtra, if so, the details thereof;

(c) whether any central advisories, model guidelines or reform benchmarks have been issued to States to improve accountability and farmer participation in APMC functioning and if so, their adoption status, State/UT-wise particularly in Maharashtra;

(d) whether the Government is aware of specific grievances raised by farmers and traders in Pune APMC and the remedial action taken thereon; and

(e) the institutional measures proposed to ensure impartial supervision, grievance redressal and  farmer-centric  reforms  in  APMCs  across  the  country,  State/UT-wise  particularly  in Maharashtra?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI BHAGIRATH CHOUDHARY)

(a): Agricultural  Produce  Market  Committees  (APMCs) are regulated by  the  respective State/UT  Governments  under  their  State  APMC  Acts  and  Rules.  As  per  the  information received from the Government of Maharashtra, there are 305 APMCs functioning in the State. Under  Rule  116  of  the  Maharashtra  Agricultural  Produce  (Development  and  Regulation) Rules,  1967,  statutory  audit  of  each  APMC  is  required  to  be  conducted  annually.  The procedure for appointment of auditors for statutory audit is prescribed in the Office Circular of Government of Maharashtra dated 27.03.2015. The status of statutory audit of APMCs in Maharashtra during the last three years is as follows:

| Year    |   No. of APMCs |   Statutory Audit Completed | Percentage (%)   |
|---------|----------------|-----------------------------|------------------|
| 2022-23 |            305 |                         285 | 93%              |
| 2023-24 |            305 |                         272 | 89%              |
| 2024-25 |            305 |                         190 | 62%              |

(b): As  informed  by  Government  of  Maharashtra,  in  Maharashtra,  the  functioning  of APMCs is governed by the Maharashtra Agricultural Produce (Development and Regulation) Act,  1963  and  the  Rules  framed  thereunder.  The  Act  and  Rules  contain  provisions empowering the competent authorities to address complaints relating to lack of transparency in  APMC  functioning,  cartelisation,  disputes  related  to  market  fee,  and  other  operational issues. Further, the Act provides for an appeal mechanism whereby any aggrieved person or market functionary may file an appeal against decisions or orders passed by the competent authority.  Accordingly,  such  complaints  are  examined  and  resolved  by  the  concerned authorities from time to time.

(c): Agricultural marketing is a State subject. However, in order to create an accessible marketing ecosystem and ensuring better price realization for farmers, the Department of Agriculture and Farmers Welfare (DA&FW) regularly coordinates with States to share best practices and facilitate trade, including through National Agriculture Market (e-NAM).

Various States have carried out reforms such as establishment of private markets, promotion  of  direct  marketing,  declaration  of  warehouses/silos/cold  storages  as  deemed market yards, introduction of e-trading platforms, single-point levy of market fee, provision of a  single  unified  licence,  rationalization  of  market  fee  and  rationalization  of  commission charges, operationalisation of modules integrated with e-NAM (FPO module, e-NWR module, payment gateway features,  platform  of  platforms,  e-permit  and  farm-gate),  recognition  of trading  licences  of  other  State  (reciprocity  of  trading  licence),  deregulation  of  fruits  and vegetables, exemption of market fee for direct sales to processing units/factories by farmers/ FPOs  at their premises, and exemption of market fee on produce brought from other States for processing, including the State of Maharashtra.

(d): As informed by Government of Maharashtra, the Directorate of Marketing, Government of Maharashtra, Pune has received complaints regarding alleged malpractices and irregularities in issuance of purchase and sale licences, illegal allocation of shop spaces and  other  instances  of  mismanagement  in  APMC  Pune.  In  this  regard,  an  Inspection Committee  was  constituted  under  Section  40A  of  the  Maharashtra  Agricultural  Produce (Development  and  Regulation)  Act,  1963.  The  inspection  has  been  completed  and  the Committee submitted its report on 27.02.2026. Based on the findings of the report, notices have been issued to the concerned parties under Rule 117(4) of the Maharashtra Agricultural Produce (Development and Regulation) Rules, 1967 for further necessary action.

(e): The responsibility for regulation  and supervision  of APMCs primarily rests with the State/UT Governments. As reported by Government of Maharashtra, institutional measures aimed  at  improving  transparency,  accountability,  grievance  redressal  mechanisms  and farmer-centric reforms in APMCs have been initiated by the concerned State Governments in  accordance  with  their  respective  APMC  Acts  and  Rules.  These  measures  include strengthening of audit systems, inspection mechanisms, grievance redressal processes and implementation of reforms based on the Model APMC framework.

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