APMC mandi (Agricultural Produce Market Committee)

An Agricultural Produce Market Committee (APMC) is a statutory body constituted by a state government under its Agricultural Produce Marketing (Regulation) Act to regulate the first-stage wholesale trade of notified agricultural produce within a defined market area. Mandis operated by APMCs are the principal physical venues for price discovery, weighment and settlement of farm produce in much of India.

Overview

Each APMC notifies a market area and a list of regulated commodities, builds market yards and sub-yards, and licenses the actors who trade there. Within the notified area, sale of regulated produce outside the APMC system was traditionally restricted, although later reforms have created exemptions for direct purchase, private markets and electronic trade.

Eligibility

Traders, commission agents (Commission Agent Arthiya), weighmen, hamals and warehouse operators wishing to function inside the market yard must obtain APMC licences and follow the committee's bye-laws. Producers do not require a licence to sell, but their consignments are routed through licensed agents or buyers.

Benefit and structure

Core functions include:

Licensing of traders, commission agents and ancillary service providers
Auction-based or open-tender sale and price discovery
Weighment and quality assessment in the yard
Daily publication of arrivals and modal prices
Dispute resolution and grievance redress

The committee finances itself through market fees and licence levies.

Implementation

APMCs report to state Agricultural Marketing Boards. The Centre issued a Model APMC Act in 2003 and a Model Contract Farming and Services Act in 2018 to encourage states to allow private markets, direct purchase by processors and pan-India electronic trading platforms such as Enam Electronic National Agriculture Market.

References

Punjab State Agricultural Marketing Board: Acts, Rules and Bye-Laws.
Agricultural Produce Market Committee — overview. Wikipedia.