3.3. Regulation of Agricultural Marketing

Agriculture is a ‘state’ subject. So, numerous mandis under various APMC laws of states exist where first sale of notified commodity happens. Also, there are several central government organisations, who are involved in agricultural marketing like, Commission of Agricultural Costs and Prices, Food Corporation of India, Cotton Corporation of India, Jute Corporation of India, etc. There are also specialised marketing bodies for rubber, tea, coffee, tobacco, spices and vegetables.

Farmer Producer Companies

It is a hybrid between cooperative societies and private limited companies which provides for sharing of profits/ benefits among the members.

The important features include:

♤ It is formed by a group of producers for either farm or non-farm activities;

♤ It is a registered body and a legal entity (under Companies Act, 1956);

♤ A part of the profit is shared amongst the producers and rest of the surplus is added to its owned funds for business expansion.