Case for Model Agriculture Produce Market Committee Act

Current Agricultural marketing system in India is the outcome of several years of Government Intervention. Actual buying and selling of commodities mainly takes place in market yards, sub-yards and Rural Periodic Markets spread throughout the country. Market functionaries (like traders, commission agents and labourers) in some markets have organized themselves in strong associations and thus, have created barriers to entry of new functionaries. Apart from the market fees, commission charges, octroi entry tax, sales tax, weighing charges, labour charges for handling, loading and unloading, purchase tax, Rural Development cess etc. are charged. In order to removed the mention defect on recommendation of the export committee for Agriculture marketing the Inter-ministerial Task Force recommend for formulation of Model Act for this purpose Accordingly, the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India, in consultation with state Government, trade and industry has formulated a Model APMC Act and circulated to the states during 2003 for its adoption.