APMC Model Act to be notified soon

The Maharashtra government is likely to notify the Model APMC Act based on amendments to the Agricultural Produce Marketing Committee Act in a day or two, a senior government official said today.

The act will permit farmers to sell their produce outside their respective markets. The government has directed all states to adopt the provisions of the Model Act that will ensure best returns for farmers through various alternatives.

Already, 17 states in India have partially or in whole adopted the various provisions of the Model Act. The Maharashtra assembly had passed the Model APMC Act in the winter session. "The draft guidelines have now been approved and converted into an Act," the official said.

According to the earlier provisions of the APMC Act, farmers were not permitted to sell their produce outside the market yards that they are attached to.

The monopoly of the government-regulated APMC market yards had prevented the development of a competitive marketing system, thereby limiting the realisations of farmers.

The Model APMC Act is expected to usher in major changes in the marketing of farm commodities in the state. The Act would pave way for setting up private markets, contract farming, direct marketing, and farmer-consumer market among others, the official said.

The act will also help large corporate houses in the country, that are already in farm produce retailing or planning such ventures, to source their requirements directly from farmers.

According to the official, Reliance Retail, ITC, Metro Cash-n-Carry, and Cargill have already received approvals for direct marketing, while Pantaloon and Aditya Birla Group have applied for licenses.