Major Provisions of the Draft Model Act

♤ Intra-state trade made available by paying a single fee.

♤ Traders will be able to sell perishables like fruits and vegetables outside existing mandis (wholesale markets).

♤ The draft law proposes to cap market fees and commission charges payable by a farmer

after bringing produce to a wholesale market.

♤ Cap on levy of market fees is proposed at 2% (of sale price) for fruits and vegetables and 1% for food grains.

♤ Warehouses and cold storages are to act as regulated markets.

♤ All regulatory powers will lie with the office of the director of agricultural marketing in the state, who will also issue licenses to traders and new

private players. As of now, this power lies with the mandis – managed by a board of directors.

♤ Farmers can directly sell their produce to bulk buyers.