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user_Palak Rohra
Palak Rohra
जुलाई 24

APMC Reforms Farmers Need to Know: From Mandi to Market

APMC Reforms
APMC Reforms

India is primarily known for its agricultural practices, which contribute significantly to the economy, with more than 70% of the population involved. As it is an ancient practice, there are various areas where the same practices are followed. It has now become important for the farmers to develop and modernise their practices to overcome the challenges and improve efficacy.

 

The Agricultural Produce Market Committee (APMC) Act and the National Agricultural Market (e-NAM) are two schemes designed by the government to modernise, promote, and regulate mandis and the nation's overall agricultural system.

 

What is APMC?

The APMC is a committee regulated by the state government. It ensures that the farmers' rights are protected and reduces the involvement of intermediaries.

 

Shortcomings in the APMC System

The monopoly of APMC: There is a common association of APMC, which is regulated by the state government. It is considered a unique regulating committee for every mandi, ensuring the proper management of mandis with common rules and regulations.

 

Restrictions: If the farmers or the mandis get registered under the APMC, it is necessary for them to follow the rules and regulations designed by the committee and can’t sell outside.

 

Cost strategy: Crops are usually purchased at an affordable price to sell at a premium price.

 

Cost of license: To get registered under APMC, farmers need to pay the fees, which increases the cost. 

 

Other expenses: Along with the license fees, there are standard charges by the APMC. This increases the expenses for farmers.

 

Objectives of the APMC

Proper management: The primary objective of the APMC is to support farmers and manage the resources (farm, production and cost) effectively to get better prices in return and improve overall efficacy.

 

Timely payments: It ensures the proper trading of crops. Additionally, the farmers receive the payments timely manner for the crops sold by them.

 

Reliability: The APMC builds trust and reliability for farmers and supports them in trading their crops. It strengthens and supports them not to worry about the sale and produce more crops.

 

Rights of farmers: APMC ensures that the rights of farmers are protected and they get benefits. It protects their trust and minimises the involvement of intermediaries to support farmers and their involvement in the mandi.

 

Smooth functioning: APMC promotes the smooth functioning of the trading activities involving the demand and supply chain. It involves the direct communication of sellers and buyers.

 

What is e-NAM, and how does it provide benefits to APMC?

E-NAM is the National Agriculture Market, and it is an electronic trading portal that works all over India. The e-NAM portals provide a single window service related to APMC. E-NAM makes all the existing Agricultural Produce Market Committee (APMC) mandis into one national market by linking them digitally. The e-NAM portal provides an APMC with many benefits. Some of the benefits are:

  • It provides software to record transactions with simple steps.
  • It promotes the buyers' and farmers' real-time analysis of trading activities, including the mandi price trends.
  • It reduces the challenges and makes the research and overall process easier.
  • It promotes digital trading, digitally updating individuals about the update, which results in improvements and reduces costs.

 

APMC Act of 2003

The APMC Act was passed by the Indian government in 2003. The act provides for the establishment of infrastructure for the agricultural marketing of farm produce.

 

Objectives of the APMC Act 2003

The primary objective of the APMC Act was to develop an effective and efficient mandi system to support transparency. It eases the overall process and exports involved in the trade.

 

Key features of the APMC Act

  • APMC is the act which is regulated by the state government. It divides the state into different market areas as mandis as a trading platform for the crops grown in the farms nearby.

  • Mandis are growing in numbers and getting registered under the APMC to promote transparency in transactions and overall trading. It builds trust and reliability.

  • It supports the direct trading of crops among farmers and sellers and reduces the need for intermediaries.

  • It builds reliability among farmers and promotes trading. It is a backbone for farmers, which protects the rights of farmers.

Frequently Asked Questions

1. What is the role of the Agricultural Produce Market Committee?

Ans. The state government have established APMC, a committee of agricultural markets. The board was created to stop pressure practices on farmers to sell products at a lower price. It was created to save farmers from the use of large retailers and to ensure that the gap between farm trade and retail prices is not too wide. The APMC is accessible nationwide, is associated with the National Agricultural Market. This commercial portal helps to create a single national market for agricultural products.

2. What are APMC and e-NAM?

Ans. The National Agriculture Market (NAM) is a pan-India electronic trading portal that connects the existing Agricultural Produce Market Committee (APMC) mandis to create a unique and common national market for agricultural commodities.

3. How does eNAM support APMC mandis?

Ans. E-NAM supports APMC mandis in various ways. It strengthens the overall process. Some of the benefits of e-NAM for an APMC mandi are software to record transactions, real-time recording of transactions, complete information on trading with ease, helps in understanding the price trends, reduces the involvement of humans and can get updated on the phone.