Salient Features of the Model APMC Act

♤ The Preamble of the Act calls for development of efficient marketing system, promotion of agri-processing and agricultural exports and to lay down procedures and systems for putting in place an effective infrastructure for the marketing of agricultural produce.

♤ Legal persons, growers and local authorities are permitted to apply for the establishment of new markets for agricultural produce in any area. Consequently, in a market area, more than one market can be established by private persons, farmers and consumers.

♤ There will be no compulsion on the growers to sell their produce through existing markets administered by the Agricultural Produce Market Committee (APMC). However, agriculturist

who does not bring his produce to the market area for sale will not be eligible for election to the APMC.

♤ Separate provision is made for notification of ‘Special Markets’ or ‘Special Commodities Markets’ in any market area for specified agricultural commodities to be operated in addition to existing markets.

♤ A new Chapter on ‘Contract Farming’ added to provide for compulsory registration of all contract farming sponsors, recording of contract farming agreements, resolution of disputes, if any, arising out of such agreement, exemption from levy of market fee on produce covered by contract farming agreements and to provide for indemnity to producers’ title/ possession over his land from any claim arising out of the agreement

♤ Provision made for direct sale of farm produce to contract farming sponsor from farmers’

field without the necessity of routing it through notified markets.

♤ Provision made for imposition of single point levy of market fee on the sale of notified agricultural commodities in any market area and discretion provided to the State Government to fix graded levy of market fee on different types of sales.

♤ Licensing of market functionaries is dispensed with and a time bound procedure for registration is laid down. Registration for market functionaries provided to operate in one or more than one market areas.

♤ Provision made for the establishment of consumers’/farmers’ market to facilitate direct sale of agricultural produce to consumers

♤ Provision made for resolving of disputes, if any, arising between private market/ consumer market and Market Committee.

♤ State Governments conferred power to exempt any agricultural produce brought for sale in market area, from payment of market fee.

♤ Market Committees permitted to use its funds among others to create facilities like grading, standardization and quality certification; to create infrastructure on its own or through public private partnership for post harvest handling of agricultural produce and development of modern marketing system.