The State/UT Agricultural Produce & Livestocks Marketing (promotion & facilitation) Act, 2017

The State/UT Agricultural Produce & Livestocks Marketing (promotion & facilitation) Act, 2017 has been unveiled by the Indian Agricultural Ministry with an objective to provide more freedom to Indian farmers in selling their produce. Under the act each state/UT has been defined as a single unified market area.

The new law has been proposed by the ministry to refurbish the existing APMC laws. So far country’s 26 states and Union Territories that include Gujarat, Andhra Pradesh, Maharashtra, Rajasthan, Karnataka, Uttar Pradesh and Madhya Pradesh, have partly or fully modified their existing APMC laws. Bihar is the only state that denied adoption of the model act, whereas all other states and UTs have agreed.

State/UT Agricultural Produce & Livestocks Marketing (promotion & facilitation) Act, 2017: Important Highlights

  1. The model law allows traders to transact in all markets across a state by simply paying a one-time fee.
  2. The Act recommends reducing the role played by Agricultural Produce Market Committee (APMC) mandis. As present APMC mandis can enforce regulation in their particular market yard only and hence gives a chance to private sector to set up their mandis.
  3. The new agricultural marketing act would provide features like private wholesale markets, state-wide single market, direct sale to bulk buyers by farmers, and electronic trading promotion etc. Agricultural marketing is subject of state concern, and thus is governed by their respective Agricultural Produce Market Committee (APMC) Acts. The states have the freedom to adopt partial or full model act.
  4. The draft law has also proposed putting a cap on mandi taxes at 2% for fruits, vegetables and 1% for food grain, along with levy of commission agent at 2% of the entire transaction cost.
  5. The draft law requires the state government to appoint a separate entity called “director of agricultural marketing” which will take decision regarding grant of licence for the new market yard establishment in the concerned state.

Why this Draft Law is Needed?

The monopoly of existing APMCs does not allow farmers to sell their farm produce to many buyers. The draft law was a much needed step, as it will offer many marketing channels to farmers for selling their agricultural produce. The draft law aims to slacken farm produce trade and offer farmers an improved price realization.

 

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