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Model APMC Act, 2003 – Key Features and Committee Recommendations

The Model APMC Act, 2003 was introduced to reform India's agricultural market structure and reduce the monopoly of APMC mandis.
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Model APMC Act, 2003 – Key Features and Committee Recommendations

The Model APMC Act, 2003 was introduced to reform India's agricultural market structure and reduce the monopoly of APMC mandis. It was based on various committee recommendations aimed at improving market efficiency and farmer profitability.

Key Committee Recommendations:

  1. Shankarlal Guru Committee (2001): Recommended allowing direct marketing, contract farming, and private markets to break the APMC monopoly.
  2. Inter-Ministerial Task Force on Agricultural Marketing (2002): Suggested the creation of a single market across states and the promotion of private investment in infrastructure.

Key Features of Model APMC Act, 2003:

✔️ Private Markets: Allowed private mandis and direct sales outside APMCs.
✔️ Contract Farming: Legalized agreements between farmers and buyers for assured prices.
✔️ Single Licensing: Enabled traders to operate across multiple markets.
✔️ Farmer-Consumer Markets: Farmers could sell directly to consumers.
✔️ Reduced APMC Monopoly: Encouraged competition for better price realization.

Despite its progressive provisions, many states did not fully implement the Act, leading to further reforms like e-NAM and the 2020 farm laws.

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