In India, markets in agricultural products are regulated under the
[UPSC Civil Services Exam – 2015 Prelims]
(a) Essential Commodities Act, 1955
(b) Agricultural Produce Market Committee Act enacted by States
(c) Agricultural Produce (Grading and Marking) Act, 1937
(d) Food Products Order, 1956 and Meat and Food Products Order, 1973
- The Agricultural Produce Market Committee (APMC) is a regulatory body established by the State Government to oversee the trade of specified agricultural produce and livestock.
- Agriculture falls under the purview of the State Government according to Schedule 7 of the Indian Constitution.
- The entire geographical area within a state is divided into market areas, known as Yard Mandis, which are managed by Market Committees appointed by the State Governments.
- Once an area is designated as a market area and comes under the jurisdiction of a Market Committee, wholesale marketing activities are restricted, and individuals or agencies cannot engage in such activities freely.
- Buyers are also required to obtain licenses from each APMC in order to conduct transactions. The establishment of APMCs aligns with government policies aimed at ensuring food security, providing remunerative prices to farmers, and ensuring fair prices for consumers.