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LATEST NEWS UPDATES | Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar </title>
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In December 2020, in line with the Central Farm Laws, the Government of Karnataka passed an amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. This amendment reduced the scope of the Agricultural Produce..."/>
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In December 2020, in line with the Central Farm Laws, the Government of Karnataka passed an amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. This amendment reduced the scope of the Agricultural Produce..." />
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<h1 class="cat-box-title">Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar</h1>
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Published on</span><span class="text-date"> Sep 7, 2022</span>
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<p style="text-align:justify">-Foundation for Agrarian Studies</p><p style="text-align:justify">In December 2020, in line with the Central Farm Laws, the Government of Karnataka passed an amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. This amendment <a href="https://www.thehindu.com/opinion/columns/amendment-to-apmc-act-is-an-attempt-to-dilute-states-intervention-in-agriculture/article31603960.ece" title="https://www.thehindu.com/opinion/columns/amendment-to-apmc-act-is-an-attempt-to-dilute-states-intervention-in-agriculture/article31603960.ece">reduced the scope</a> of the Agricultural Produce Marketing Committees (APMC) by effectively ending their status as the only place (with some exceptions) where wholesale agricultural trade was permitted by law. Despite the three Central Farm Laws being repealed after the year-long farmers’ struggle, the Government of Karnataka has not yet repealed its amendment to the APMC system.</p><p style="text-align:justify">State Law Minister J. C. Madhuswamy had <a href="https://frontline.thehindu.com/dispatches/article31593925.ece" title="https://frontline.thehindu.com/dispatches/article31593925.ece">stated at the time</a> of introducing this amendment that farmers would be free of exploitative intermediaries with these reforms. He claimed that the private companies involved in food processing can go right up to the doorstep of the farmers’ houses and directly purchase the product from them. To quote him, “Farmers are free to sell their produce at APMC yards or private markets. The choice is up to the farmer.” So, has the reform benefited the farmers? While the question is complex, given the heterogeneity of Indian agriculture and the short period since the amendments have been introduced, I attempt to provide some insights from information obtained on market arrivals and prices, and interviews conducted at the Bangalore APMC.</p><p style="text-align:justify"><em>APMC System and the Reforms</em></p><p style="text-align:justify">One of the key functions performed by the APMC markets is to act as a platform for price discovery. The transactions inside APMC market are a result of interactions between various economic agents. The farmer brings produce to the market, which is then arranged for sale by commission agents, who markets the product as a representative of the farmer. The commodity is then displayed to the traders who determine the prices through a regulated (including auction) mechanism. The whole system is supervised by the elected committees. The revenues earned from these transactions help APMCs in meeting their expenditure and for investment in market infrastructure.</p><p style="text-align:justify">Please <a href="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU" title="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU">click here</a> to read more. <br /> </p>
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<br><a href="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU" class="re" target="_blank">Foundation for Agrarian Studies, 7 September, 2022, https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU</a><div class="clear"></div>
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LATEST NEWS UPDATES | Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar </title>
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<h1 class="cat-box-title">Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar</h1>
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<p style="text-align:justify">-Foundation for Agrarian Studies</p><p style="text-align:justify">In December 2020, in line with the Central Farm Laws, the Government of Karnataka passed an amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. This amendment <a href="https://www.thehindu.com/opinion/columns/amendment-to-apmc-act-is-an-attempt-to-dilute-states-intervention-in-agriculture/article31603960.ece" title="https://www.thehindu.com/opinion/columns/amendment-to-apmc-act-is-an-attempt-to-dilute-states-intervention-in-agriculture/article31603960.ece">reduced the scope</a> of the Agricultural Produce Marketing Committees (APMC) by effectively ending their status as the only place (with some exceptions) where wholesale agricultural trade was permitted by law. Despite the three Central Farm Laws being repealed after the year-long farmers’ struggle, the Government of Karnataka has not yet repealed its amendment to the APMC system.</p><p style="text-align:justify">State Law Minister J. C. Madhuswamy had <a href="https://frontline.thehindu.com/dispatches/article31593925.ece" title="https://frontline.thehindu.com/dispatches/article31593925.ece">stated at the time</a> of introducing this amendment that farmers would be free of exploitative intermediaries with these reforms. He claimed that the private companies involved in food processing can go right up to the doorstep of the farmers’ houses and directly purchase the product from them. To quote him, “Farmers are free to sell their produce at APMC yards or private markets. The choice is up to the farmer.” So, has the reform benefited the farmers? While the question is complex, given the heterogeneity of Indian agriculture and the short period since the amendments have been introduced, I attempt to provide some insights from information obtained on market arrivals and prices, and interviews conducted at the Bangalore APMC.</p><p style="text-align:justify"><em>APMC System and the Reforms</em></p><p style="text-align:justify">One of the key functions performed by the APMC markets is to act as a platform for price discovery. The transactions inside APMC market are a result of interactions between various economic agents. The farmer brings produce to the market, which is then arranged for sale by commission agents, who markets the product as a representative of the farmer. The commodity is then displayed to the traders who determine the prices through a regulated (including auction) mechanism. The whole system is supervised by the elected committees. The revenues earned from these transactions help APMCs in meeting their expenditure and for investment in market infrastructure.</p><p style="text-align:justify">Please <a href="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU" title="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU">click here</a> to read more. <br /> </p>
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<br><a href="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU" class="re" target="_blank">Foundation for Agrarian Studies, 7 September, 2022, https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU</a><div class="clear"></div>
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<h1 class="cat-box-title">Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar</h1>
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<p style="text-align:justify">-Foundation for Agrarian Studies</p><p style="text-align:justify">In December 2020, in line with the Central Farm Laws, the Government of Karnataka passed an amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. This amendment <a href="https://www.thehindu.com/opinion/columns/amendment-to-apmc-act-is-an-attempt-to-dilute-states-intervention-in-agriculture/article31603960.ece" title="https://www.thehindu.com/opinion/columns/amendment-to-apmc-act-is-an-attempt-to-dilute-states-intervention-in-agriculture/article31603960.ece">reduced the scope</a> of the Agricultural Produce Marketing Committees (APMC) by effectively ending their status as the only place (with some exceptions) where wholesale agricultural trade was permitted by law. Despite the three Central Farm Laws being repealed after the year-long farmers’ struggle, the Government of Karnataka has not yet repealed its amendment to the APMC system.</p><p style="text-align:justify">State Law Minister J. C. Madhuswamy had <a href="https://frontline.thehindu.com/dispatches/article31593925.ece" title="https://frontline.thehindu.com/dispatches/article31593925.ece">stated at the time</a> of introducing this amendment that farmers would be free of exploitative intermediaries with these reforms. He claimed that the private companies involved in food processing can go right up to the doorstep of the farmers’ houses and directly purchase the product from them. To quote him, “Farmers are free to sell their produce at APMC yards or private markets. The choice is up to the farmer.” So, has the reform benefited the farmers? While the question is complex, given the heterogeneity of Indian agriculture and the short period since the amendments have been introduced, I attempt to provide some insights from information obtained on market arrivals and prices, and interviews conducted at the Bangalore APMC.</p><p style="text-align:justify"><em>APMC System and the Reforms</em></p><p style="text-align:justify">One of the key functions performed by the APMC markets is to act as a platform for price discovery. The transactions inside APMC market are a result of interactions between various economic agents. The farmer brings produce to the market, which is then arranged for sale by commission agents, who markets the product as a representative of the farmer. The commodity is then displayed to the traders who determine the prices through a regulated (including auction) mechanism. The whole system is supervised by the elected committees. The revenues earned from these transactions help APMCs in meeting their expenditure and for investment in market infrastructure.</p><p style="text-align:justify">Please <a href="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU" title="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU">click here</a> to read more. <br /> </p>
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<br><a href="https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU" class="re" target="_blank">Foundation for Agrarian Studies, 7 September, 2022, https://fas.org.in/deregulation-of-agricultural-marketing-how-has-it-affected-the-apmc-system-in-karnataka/?fbclid=IwAR2-HzCXK1lE8ihMv5eQao_x3KRrWpp8DCk4mdtdVSCvC2Z_xLWgVkazWFU</a><div class="clear"></div>
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LATEST NEWS UPDATES | Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar
Deregulation of Agricultural Marketing: How has it Affected the APMC System in Karnataka? -Ayush Kumar
Published on Sep 7, 2022
Modified on Sep 14, 2022
-Foundation for Agrarian Studies
In December 2020, in line with the Central Farm Laws, the Government of Karnataka passed an amendment to the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. This amendment reduced the scope of the Agricultural Produce Marketing Committees (APMC) by effectively ending their status as the only place (with some exceptions) where wholesale agricultural trade was permitted by law. Despite the three Central Farm Laws being repealed after the year-long farmers’ struggle, the Government of Karnataka has not yet repealed its amendment to the APMC system.
State Law Minister J. C. Madhuswamy had stated at the time of introducing this amendment that farmers would be free of exploitative intermediaries with these reforms. He claimed that the private companies involved in food processing can go right up to the doorstep of the farmers’ houses and directly purchase the product from them. To quote him, “Farmers are free to sell their produce at APMC yards or private markets. The choice is up to the farmer.” So, has the reform benefited the farmers? While the question is complex, given the heterogeneity of Indian agriculture and the short period since the amendments have been introduced, I attempt to provide some insights from information obtained on market arrivals and prices, and interviews conducted at the Bangalore APMC.
APMC System and the Reforms
One of the key functions performed by the APMC markets is to act as a platform for price discovery. The transactions inside APMC market are a result of interactions between various economic agents. The farmer brings produce to the market, which is then arranged for sale by commission agents, who markets the product as a representative of the farmer. The commodity is then displayed to the traders who determine the prices through a regulated (including auction) mechanism. The whole system is supervised by the elected committees. The revenues earned from these transactions help APMCs in meeting their expenditure and for investment in market infrastructure.
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