Agricultural Marketing and Prices

Economic Affairs

Title

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Indian Economy - Understanding the basics of Indian economic system

Consider the following statements regarding APMC Act:

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

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

3. It facilitates Contract farming model.

4. It does not provide for a special market for perishables.

Which of the following statements are correct?

2 and 3 only

2, 3 and 4 only

1, 3 and 4 only

1 and 3 only

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.
Some of the salient features of the APMC Model Act 2003 are as follows 1) Facilitates Contract farming model 2) Special market for perishables 3) Farmers, private persons can setup own market 4) Licensing norms relaxed 5) Single market fee 6) APMC Revenue to be used for improving market infrastructure
However, not all States have passed the bill.
Some States have passed but neither framed rules nor notified it.Thus, inter-state barriers continue.
Further, Union Budget 2015 proposed to create United National Agriculture Market with the help of State Government and NITI Aayog.