AMPC Act: What is APMC Act in India?_00.1
Latest Banking jobs   »   AMPC Act: What is APMC Act?

AMPC Act: What is APMC 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 .

AMPC Act: What is APMC Act in India?_50.1

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

Download Hindu Review of October 2021: Free PDF

×

Download success!

Thanks for downloading the guide. For similar guides, free study material, quizzes, videos and job alerts you can download the Adda247 app from play store.

Thank You, Your details have been submitted we will get back to you.

Was this page helpful?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Login

OR

Forgot Password?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Sign Up

OR
Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Forgot Password

Enter the email address associated with your account, and we'll email you an OTP to verify it's you.


Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to
/6


Did not recive OTP?

Resend in 60s

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Change Password



Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Almost there

Please enter your phone no. to proceed
+91

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to Edit Number


Did not recive OTP?

Resend 60

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?