MP announces large scale reforms in APMC Act

Madhya Pradesh announced large scale reforms in its APMC Act (Agriculture Produce Marketing Committee Act) taking a proactive step to end the decades-old monopoly of state-run agricultural produce market committees (APMCS). The APMC have often been blamed for exploitative trading, creating hardships for the farmers. The steps have been taken to enable direct procurement from farmers with single license for trading in any mandi within the state. The reforms also include designating warehouses and silos and also facilitating in setting up of private mandis.

The steps have been announced to help cultivators sell their produce directly without coming to mandis and outside the regulated APMCS. The ongoing Covid-19 crisis has hastened these measures.

The state government has promulgated an ordinance called the ‘Madhya Pradesh Krishi Upaj Mandi (amendment) Act, 2020’. Seven new provisions have been added to the Mandi Act including provision for the establishment of Mandis in private sector. This will facilitate direct procurement of agriculture produce by food processing companies, exporters and wholesalers from farmers’ doorsteps.

The farmers will also have the option of going to the Mandis to sell their produce at the minimum support price (MSP).