{"id":1963,"date":"2024-03-30T14:23:37","date_gmt":"2024-03-30T08:53:37","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1963"},"modified":"2024-04-03T07:07:53","modified_gmt":"2024-04-03T01:37:53","slug":"q-in-india-markets-in-agricultural-products-are-regulated-under-the","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-in-india-markets-in-agricultural-products-are-regulated-under-the","title":{"rendered":"Q.\u00a0In India, markets in agricultural products are regulated under the"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>Essential Commodities Act, 1955<\/li>\n\n\n\n<li>Agricultural Produce Market Committee Act enacted by States<\/li>\n\n\n\n<li>Agricultural Produce (Grading and Marking) Act, 1937<\/li>\n\n\n\n<li>Food Products Order, 1956 and Meat and Food Products Order, 1973<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer:<\/strong>&nbsp;<strong>(b) Agricultural Produce Market Committee Act enacted by States<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-6607c628e11e0\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Agricultural Produce Market Committees (APMC)<\/strong>&nbsp;are marketing boards set up by state governments&nbsp;<strong>to eliminate farmer exploitation by intermediaries<\/strong>, in which farmers are forced to sell their produce at extremely low prices.<\/li>\n\n\n\n<li>Because agricultural marketing is a state subject, the&nbsp;<strong>Agricultural Produce Market Committee (APMC)<\/strong>&nbsp;is a system that operates under the State Government.<\/li>\n\n\n\n<li>The APMC has Yards\/Mandis in the market area that regulate the notified agricultural produce and livestock.<\/li>\n\n\n\n<li>The goal of implementing APMC was to reduce the number of Distress Sales made by farmers who were being pressured and exploited by creditors and other intermediaries.<\/li>\n\n\n\n<li><strong>APMC<\/strong>&nbsp;ensures that farmers are paid fairly and on time for their produce.<\/li>\n\n\n\n<li><strong>APMC<\/strong>\u00a0is also in charge of regulating agricultural trading practices. This has several advantages, including:\n<ul class=\"wp-block-list\">\n<li>Unnecessary intermediaries are eliminated.<\/li>\n\n\n\n<li>Reduced market charges improved market efficiency.<\/li>\n\n\n\n<li>The producer-seller relationship is well protected.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"Objectives\">Objectives of APMC Act<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The<strong>&nbsp;APMC committee<\/strong>&nbsp;was established to protect farmers from creditors and other intermediaries.<\/li>\n\n\n\n<li>These committees were also expected to ensure that the farm-to-retail price did not rise excessively and that farmers were paid on time via the APMC auctions.<\/li>\n\n\n\n<li>Farmers were also required to use APMCs for storage, such as go-downs and the like.<\/li>\n\n\n\n<li>Farmers were also supposed to be able to sell their produce directly to consumers through&nbsp;<strong>APMCs.<\/strong><\/li>\n\n\n\n<li>Price fluctuations were also managed with the help of<strong>&nbsp;APMCs.<\/strong><\/li>\n\n\n\n<li>Developing an efficient marketing system.<\/li>\n\n\n\n<li>Agriculture processing and export promotion.<\/li>\n\n\n\n<li>Develop procedures and systems for establishing an efficient infrastructure for agricultural produce marketing.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group has-theme-palette-8-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h6 class=\"wp-block-heading\" id=\"apmc-and-enam\">APMC and e-NAM<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The National Agriculture Market (NAM) is a pan-India electronic trading portal that connects the existing Agricultural Produce Market Committee (APMC) mandis across the country to form a unified national market for agricultural commodities.<\/li>\n\n\n\n<li>The e-NAM portal is a one-stop shop for all APMC-related information and services, which includes:\n<ul class=\"wp-block-list\">\n<li>Commodity arrivals and prices.<\/li>\n\n\n\n<li>Trade offers for buying and selling.<\/li>\n\n\n\n<li>Provision for responding to trade offers, among other services.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Even when agricultural produce is still flowing through the mandis, the NAM reduces transaction costs and information irregularity.<\/li>\n\n\n\n<li>The states can administer agriculture marketing according to their agri-marketing regulations, which divide the state into various market areas, each of which is administered by a separate APMC, which imposes its own marketing regulations, including fees.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"essential-commodities-act-of-1955\">Essential Commodities Act of 1955<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The ECA Act 1955 was&nbsp;<strong>legislated at a time when the country was facing a scarcity of foodstuffs<\/strong>&nbsp;due to persistent low levels of foodgrains production.<\/li>\n\n\n\n<li>The country was dependent on imports and assistance (such as wheat import from the US under PL-480) to feed the population.<\/li>\n\n\n\n<li>To prevent&nbsp;<strong>hoarding and black marketing of foodstuffs, the Essential Commodities Act was enacted in 1955.<\/strong><\/li>\n\n\n\n<li><strong>Implementing Agency:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The&nbsp;<strong>Ministry of Consumer Affairs, Food and Public Distribution<\/strong>, implements the Act.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Essential Commodity:<\/strong>\n<ul class=\"wp-block-list\">\n<li>There is&nbsp;<strong>no specific definition<\/strong>&nbsp;of essential commodities in the Essential Commodities Act, 1955.<\/li>\n\n\n\n<li>Section 2(A) of the Act states that an&nbsp;<strong>\u201cessential commodity\u201d means a commodity specified in the Schedule of the Act.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Legal Jurisdiction:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The Act&nbsp;<strong>gives powers to the central government<\/strong>&nbsp;to add or remove a commodity in the Schedule.<\/li>\n\n\n\n<li>The Centre, if it is satisfied that&nbsp;<strong>it is necessary to do so in the public interest, can notify an item as essential,<\/strong>&nbsp;in consultation with state governments.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Objective:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The ECA 1955 is used to&nbsp;<strong>curb&nbsp;inflation&nbsp;by allowing the Centre to enable control by state governments of trade<\/strong>&nbsp;in a wide variety of commodities.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Impact:<\/strong>\n<ul class=\"wp-block-list\">\n<li>By declaring a commodity as essential, the government&nbsp;<strong>can control the production, supply, and distribution<\/strong>&nbsp;of that commodity, and impose a stock limit.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer:&nbsp;(b) Agricultural Produce Market Committee Act enacted by States Notes: Objectives of APMC Act APMC and e-NAM Essential Commodities Act of 1955<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[58],"class_list":["post-1963","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-58"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian 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