06-09-2012, 11:30 AM
APMC MODEL ACT-2003
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AGRICULTURE MARKETING
Agricultural marketing can be defined as an act comprising of all activities involved in supply of farm inputs to the farmers and movement of agricultural products from the farms to the consumer.
It involves packaging, grading, processing, storage, transport, channels of distribution and all other functions in the process.
AGTRICULTURAL MARKETING CONSTRAINTS
Predominantly marginal or small farmers – Hence small marketable surpluses & limited bargaining power
Poor availability of markets & monopolistic tendencies of APMCs
Inadequate infrastructure in wholesale markets/ rural primary markets
Multiple and exploitative intermediaries – low returns
Fragmented supply chain, poor cold chain & high post-harvest losses
Lack of cleaning, grading, packaging & quality certification facilities
Limited access to market information and marketing opportunities
INITIATIVES OF MARKETING REFORMS
Amendments in APMC Acts suggested by Expert Committee on Market Reforms constituted by the Ministry of Agriculture (Report in June, 2001)
Expert Committee recommendations discussed in the National Conference of State Agriculture Marketing Ministers on 27.09.2002
Committee headed by Additional Secretary (AM), GOI including State Representatives set up to draft a Model Law for Agri-Marketing
Model APMC Act finalized on 09.09.2003 by the Committee and circulated to States by Central Government
Model Rules based on the Model Act circulated to States by the Ministry in November, 2007
NDC has resolved on 29th May, 2007 for completion of amendments in APMC Acts and notification of Rules there under by March, 2008.
IMPACT OF APMC AMENDMENT
Amendments to the APMC would make the present marketing system more effective and efficient by removing unnecessary restrictions.
Promotion of Agricultural Markets’ in private/cooperative sector will encourage private sector to make massive investments required for development of alternative marketing infrastructure and supporting services.
Giant corporations can now set up private markets, not regulated by the market committee.
The early APMC Acts restricted the farmer from entering into direct contract with any processor/ manufacturer as the produce was required to be canalized through regulated market. In the changed scenario, the producer should be free to enter into forward contract whether inside or outside the regulated market.