Challenges with Agricultural Marketing and APMC Act of 2003

Agricultural Marketing:-

India produces huge amount of food grains and other crops every year. But, the revenue generated through agricultural sector is far less than the production. The reason for this condition is that all the agricultural produce is not properly marketed. The farmers are not able to sell their produce directly in the market, but have to give them to the Middlemen at very low prices.

These middlemen stock them in the cold storages and warehouses and sell them in the black market at very high prices. Sometimes, by stocking the material for long periods they create demand in the market and the government itself is forced to raise the prices. Indian economy is very badly affected by this kind of illegal practices and mainly, the farmers do not get money even to cover their expenses and are even committing suicides.

APMC ACT of 2003, for development of agriculture in India:

The main features of this ACT are as follows:

1. Giving credit facilities to the farmers so that they can handle their own produce.
2. Apart from regulatory markets, other markets by private traders are also permitted.
3. Farmers are permitted to sell their produce directly to the consumers.
4. Public and private partnership should be encouraged in the marketing system.
5. Setting up of sufficient cold storage and warehouse facilities and making them accessible to the farmers.
6. Special markets should be set up for perishable items like fruits and vegetables.
7. Separate committees to decide the rates of commercial crops and non-commercial crops.
8. Imposing severe punishments for illegal practising and black marketing.