Statsguru: A look at the good and bad of APMCs as new farm laws kick in

After DECADES of discussion, India now has new farm laws that open up a parallel market for farmers, where the existing — read old — regulations will not apply. The new central laws bypass the existing Agriculture Produce Market Committees (APMCs) or mandis regulated by state laws.

APMCs are the central points where farm produce is pooled together (supply) and distributed to other parts (demand) of the country. Although this system exists across most states, the importance of mandis varies, and so does government intervention in terms of procurement.

Chart 1 shows that central agencies are procuring rice and wheat