The model Agriculture Produce and Livestock Marketing Promotion and Facilitation Act 2017 has which ...........

Economic Affairs Others

The model Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, has which of the following provisions?

Establish a pan-nation deregulated and de-licensed wholesale agri-market
Devolving all regulatory powers of agricultural marketing in the state to the Local self-governing bodies
Allowing private players and traders to set up local wholesale markets

Select the correct answer using the codes below.

1 and 3 only

2 and 3 only

1 and 2 only

3 only

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Explanation:

Traditionally the agricultural produce was sold by the farmers in the village or nearby places. However, the system was characterized by malpractices by middlemen, inadequate price to the farmers etc. So the State’s enacted their APMC acts to set up regulated agricultural markets so as to ensure that farmers get a fair price for their produce. But even this arrangement led to a lot of problems.

The model Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017 was presented in April 2017 and seeks to replace APMC act 2003. It is seen as a major agriculture marketing reform to help farmers directly connect with the different buyers and enable them to discover optimum price for their commodities. The purpose is to create a single agriculture market with a single license wherein agriculture produce as well as livestock could be traded. Some of the important provisions:

The new model law seeks to establish a regulated wholesale agri-market at a distance of every 80 km.
To enable this, it has proposed to issue licenses to new private players and traders who wish to set up a wholesale market. Even private market yards, warehouses and cold storages will be allowed to act as regulated markets.
Unlike the current system, now only by paying unified single fees, farmer/trader will be able to transact in all such regulated agri-markets within the state. There will be no separate fees for individual markets.
It caps market fee (including developmental and other charges) at not more than 1 per cent for fruit and vegetables, and two per cent for food grain. It caps commission agents’ fee at not more than two per cent for non-perishables and four per cent for perishables.
Besides, it stipulates a single license for trading within the state and at the national level.
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 the Board of directors.
It also has the provision for promoting online or spot (e-national agriculture market) agriculture market platforms