7 Key reforms in Agricultural Marketing

By | March 6, 2016
(Last Updated On: March 6, 2016)

Reforms in Agricultural Marketing

To address the demands for marketing of increased and diversified agricultural marketable surplus there is a need to strengthen the network of regulated markets and augment it with alternative marketing channels.  As per the recommendation of the National Farmers Commission (2004), that a regulated market should be available to farmers within a radius of 5 Km (corresponding market area of about 80 square km.). However, presently all-India average area served by a regulated market is 487.40 square km. The number of commodity specific markets with requisite infrastructure are also limited.

Agriculture Marketing is governed by the Agricultural Produce Marketing Committee (APMC) Acts, which are administered by respective State Governments. Some State Governments have ushered reforms in their marketing sector to meet the challenges.

In order to keep pace with the changing production pattern and growing marketable surplus, the Government advocates development of adequate number of markets equipped with modern infrastructure, with increased private sector participation and development of other marketing channels like direct marketing and contract farming etc. The Government is actively pursuing  with States to amend their marketing laws to provide suitable legal framework and policy atmosphere to usher such developments.  The reform agenda of the Government focuses on 7 vital areas for reforms. State-wise progress is given below.

Further, as a part of reforms, Government announced a scheme for setting up of  National Agriculture Market (NAM).   Under NAM, a common e-market platform is to be deployed for on-line trading across the States/ Country.   It is expected that NAM would address the marketing constraints of fragmentation, lack of transparency in bidding, poor price discovery, information asymmetry between sellers and buyers and provide farmers with a larger share of the consumer rupee.

Status of  Marketing  Reforms with reference to 7 key areas vis-a-vis Model APMC Act as  updated on 25/02/2016.


Sl. No.Area of ReformsStates adopted the suggested area of marketing  reforms


1.Establishment of private market yards/ private markets managed by a person other than a market committee.Andhra Pradesh, Arunachal Pradesh, Assam,  Chhattisgarh, Gujarat, Goa, Himachal Pradesh, Karnataka,  Maharashtra,  Mizoram, Nagaland, Orissa (excluding for paddy / rice), Rajasthan,  Sikkim,  Telangana, Tripura, Punjab, UT of Chandigarh, Jharkhand, Uttarakhand, West Bengal .
2.Establishment of  direct purchase of agricultural produce  from agriculturist  (Direct Purchasing from producer) Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Goa, Haryana (for specified crop through establishment of Collection Centres) Himachal Pradesh, Karnataka, Madhya Pradesh,    Maharashtra, Mizoram, Nagaland, Rajasthan,  Sikkim,  Telangana, Tripura, Punjab (only in Rule ), UT of Chandigarh (only in Rule ),Jharkhand, Uttarakhand and West Bengal .

U.P. (Only for bulk purchase under  executive order issued  time to time)

3.To promote and permit  e-trading, Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Haryana, H.P., Karnataka, Rajasthan, Sikkim, Goa, Madhya Pradesh, Maharashtra (has granted license to Commodity Exchanges registered under FMC), Mizoram,  Telangana, Uttarakhnad .
4.Establishment of  farmers/ consumers  market managed by a person other than a market committee (Direct sale by the producer)Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Goa, Himachal Pradesh, Karnataka,    Maharashtra, Mizoram, Nagaland, Rajasthan,  Sikkim, Tripura,  Jharkhand,  Uttarakhand and West Bengal.
5.Contract Farming Sponsor shall register himself with the Marketing Committee or with a prescribed officer in such a manner as may be prescribed.Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Haryana Himachal Pradesh, Jharkhand, Karnataka,  Maharashtra, Madhya Pradesh, Mizoram, Nagaland, Orissa, Punjab (separate Act), Rajasthan,   Sikkim, Telangana, Tripura,  Uttarakhand.
6.Single point levy of market feeAndhra Pradesh, Rajasthan,  Gujarat ( for processor, grader, packer, value addition and exporter), Goa,  Himachal Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh, Nagaland, Jharkhand, Sikkim, UT of Chandigarh, Punjab, Mizoram,  Telangana, Uttar Pradesh  and Uttarakhand.


Single registration/ license  for trade/  transaction in more than one market Andhra Pradesh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka (in Rules only), Rajasthan, Chhattisgarh  Madhya Pradesh,   Maharashtra, Mizoram Nagaland,  Telangana ((in Rules only), Sikkim .

This information was given by the Minister of State for Agriculture & Farmers Welfare Sh. Mohanbhai Kalyanjibhai Kundaria in Rajya Sabha today.

Source Ministry of Agriculture 04-March, 2016

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