Agricultural produce market committee

An agricultural produce market committee (APMC) is a marketing board established by a state government in India.

Principles

APMC operate on two principles:

  • Ensure that farmers are not exploited by intermediaries (and money lenders) who compel farmers to sell their produce at the farm gate for an extremely low price.
  • All food produce should first be brought to a market yard and then sold through auction.
  • Features

    Each state which operates APMC markets geographically divide the state and markets (mandis) are established at different places within the state. Farmers are required to sell their produce via auction at the mandi in their region. Traders require a license to operate within a mandi. Wholesale and retail traders (e.g. shopping mall owners) and food processing companies cannot buy produce directly from a farmer.

    Examples within states

    Karnataka

    The state government of Karnataka has created APMCs in many towns to enable farmers to sell their produce at reasonable prices. Most APMCs have a market where traders and other marketing agents are provided stalls and shops to purchase agriculture produce from farmers. Farmers can sell their produce to agents or traders under the supervision of the APMC.

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