AMPC Act: What is APMC Act?

An Agricultural Produce Market Committee (APMC) is a marketing board which is established by a state government in India to ensure farmers are safeguarded from exploitation by large retailers. Read this article to learn more about this Act

AMPC Act: Recently news that is the front headline of the newspaper is that ” The Karnataka government’s step of amending the Agricultural Produce Marketing Committee Act is an effort to dilute the spirit of the State’s intervention in safeguarding the interests of farmers so that they do not fall into the large trap of debt .

About Course:

"Did you Know? In this pack you will get All new content we launch in the next 1 months"
 

This is the most recommended and NRA-CET ready Pack!
 
Use Code 'DREAM' to avail at the best price today

This package Includes IBPS PO Study Material -  Subscribe Now

About Bank Mahapack
If you are preparing for more than 1 Banking & Insurance exams then this is the pack we recommend you buy.

It is most cost-effective and you get access to 100% digital content for Bank & Insurance exams on Adda247.

Banking & Insurance Exams Covered in this Pack

Additionally, you can crack any private bank job exam with content in this pack.

 

Bank & Insurance Mahapack Highlights 

  • Structured course content
  • Recorded classes available if you miss any live class
  • Previous Years’ Papers of all upcoming exams.
  • Full Length Mocks based on the latest pattern with detailed solutions (video solutions for certain topics)
  • Topic level knowledge tests
  • Strategy sessions, time management & Preparation tips from the experts

 

Validity: 1 Month

Bank Maha Pack
  1. Unlimited Live Classes & Recorded Video Courses
  2. Unlimited Tests and eBooks
  3. 1 Lakh+ Selections
Validity
  1. 15 Months
  2. 9 Months
  3. 3 Months
  4. 27 Months
  5. 1 Month
6799 453/month
BUY NOW

Agricultural marketing is a market which has to undergo a series of exchanges or transfers from one person to another before it reaches the consumer. There are some factors on which selling on any agricultural  like the demand of the product at that time, availability of storage, etc. We can either  sold the product directly in the market or it may be stored locally for the time being. There are time when processing needs to be done because consumers want it, or sometimes to conserve the quality of that product. In various points of different markets like primary, secondary or terminal markets, the distribution system has to match the supply with the existing demand by whole selling and retailing.

What is AMPC Act in India?

Agricultural Produce Market Committee act in India

Current APMC System

When India got  Independence, it was a moneylenders or trader in villages which mainly controls the whole distribution system of agriculture commodities this leads to the  farmers being trapped into a perpetual debt instead of getting any profit. In order to  overcome this problem, different state enacted their APMC acts to set up Agricultural Markets. In other words, An Agricultural Produce Market Committee (APMC) is a marketing board which is generally established by a state government in India to ensure farmers are safeguarded from exploitation by large retailers and does not fall into the trap of debt, as well as ensuring the farm to retail price spread does not reach excessively high levels.

Also Read,

APMC Act Features

a) As per this act, The state is divided into different markets based on geography and many other principal or sub markets established in various parts of the state. When once a particular area is declared a market area and falls under the jurisdiction of that particular area Market Committee, no other person or agency is allowed freely to carry on wholesale marketing activities.

b) These markets which are  managed by the Market Committees are constituted by the State Governments. Market Committee constitutes of   10-20 members who are either elected or nominated by govt but elections are rare.

c)  It is the responsibility of market committee to authorize various commission agents or traders to carry out various procurement and distribution activities related to agriculture produce. In other words, license raj is prevalent in today’s liberalized India as traders had to take license before carrying out any activity.

Daily Current Affairs 2020 Updates

APMC System Flaws:

• This leads to Monopoly because of the following reasons given below:

1. It is the responsibility of the Market committee authorize many commission agents or traders in market area to undertaken various activities in APMCs.

2. Farmer can only sell their agriculture produce only to these commission agents either through personal relations or through process of auctions.

3. Agents may come together and and form cartels to procure produce not above a specified price, ultimately increase their own profits while reducing the farmer’s one.

4. The wholesalers and retailers are only eligible  to buy agriculture produce from only these agents or traders. Again they adopt the technique of cartelization to sell the produce to wholesalers.

5. Due to this farmers got lesser price for their produce and end consumer had to pay more money to buy the similar produce which might not be case if APMC situation was not present.

Click Here to Register for Bank Exams 2020 Preparation Material