Model APMC Act 2017

Mains Marks Booster     5th August 2023        

The Model Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017 (APLM act) was proposed in April 2017 to replace the APMC Act (Agricultural Produce Marketing Committee) 2003.As, this Act aims at developing a state-level unified market through acquisition of at least nine essential areas of rehabilitation.

Salient features of APMC ACT ,2017

  • 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 Agricultural Produce and Livestock Market Committee (APLMC) is concerned (State/UT level single market).
  • Full democratization of Market Committee and State/UT Marketing Board.
  • Disintermediation of food supply chain by integration of farmers with processors, exporters, bulk retailers and consumers
  • Clear demarcation of the powers and functions between Director of Agricultural Marketing and Managing Director of State/UT Agricultural Marketing Board.

Scope of improvement

  • Speedy uptake of this act is needed at state level. 
  • Introducing an online platform, which can be done through the pre-existing National Agriculture Market or e-NAM, would allow better price realisation for farmers for the growth of the agriculture sector.
  • Infrastructure creation -the government is needed to create probing, grouping and grading infrastructure at the mandis.
  • To strengthen the markets, the government can adopt Electronic Negotiable Warehouse Receipts (e-NWRs)

The model APLM Act was enacted in 2017 with an aim to, liberalise agri-market by creating a single agri-market where with single licence one can trade agri-produce as well as livestock, set up a wholesale market at every 80 km, end the monopoly of APMC and allow more producers to set up markets and create a healthy competition so that farmers can accordingly discover prices and sell their produce. 

agriculture Produce .

Farmer producer organizations (FPOs) 

  • A Farmer Producer Organisation (FPO) is a group of farmers who come together to form a company or an organisation, with the aim of increasing their bargaining power and improving their economic status.
  • The Government of India has approved and launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” to form and promote 10,000 new FPOs till 2027-28  

Role of the Farmer Producer Organisation (FPO)

  • Inputs-Provide quality production inputs like seed, fertiliser, pesticides, and other inputs at wholesale rates that are reasonably lower
  • Machinery and equipment -Make production and post-production machinery and equipment, such as cultivators, tillers, sprinkler sets, combine harvesters, and others, available on a custom hiring basis to members to reduce per-unit production costs
  • Offer value-added services- such as cleaning, assaying, sorting, grading, packing, and farm-level processing facilities at affordable user charges. Additionally, storage and transportation facilities may be provided
  • complementary activities -Engage in higher income-generating activities like seed production, 

Challenges for FPO -

  • Lack of technical skills, Weak financial, Lack of professionally trained personnel, Inadequate credit access,Lack of risk mitigation mechanism, Inadequate access, Inadequate access to infrastructure 

FPO has been considered as a way to boost agriculture income and manage the risk and vulnerabilities of farming and provide them with good bargaining power.