07th December, 2015 (MAINS)


Q1. There is also a point of view that Agriculture Produce Market Committees (APMCs) set up under the state acts have not only impeded the development of agriculture but also have been the cause of food inflation in India. Critically examine. [12.5marks/2014/GS-4] 150 words.

Please write answer in the comments section.

  • Umesh Sachin

    Reasons why APMCs are impeding the development of agriculture and causing food inflation in India:
    1. APMC Act mandates the sale and purchase of agricultural commodities in government regulated mandis to ensure that moneylenders and intermediaries do not force the farmers to sell their produce below market prices.
    2. But over a period of time a network of intermediaries has developed in the mandis who manipulate the system to bring down the prices which a farmer is liable to be paid.
    3. Farmers bring their produce to the mandis and they are not in a position to take it back if they find low prices. Moreover farmers cannot sell the produce directly to the consumer. So they are forced sell their produce to the intermediaries at whatever prices they get.
    4. The journey of farmers produce from farm to mandis involves multiple transportation cost, handling charges, agent commission and other expenses which increase the price of the produce by 20 percent.
    5. Middlemen indulge in hoarding practices amid speculation of bad produce due to weak monsoon or transporter strikes etc. and inflate the prices.
    6. APMC act is different for different states making it difficult for free flow of agricultural goods creating a mismatch of demand and supply leading to inflation.

    1. De-listing vegetables and fruits from APMC Act as farmers can then sell their produce directly to the consumers eliminating the middlemen.
    2. Absence of middlemen will reduce the commission paid at different levels bringing down inflation to some level.
    3. Thus it will be a win-win situation for producers, sellers and consumers thereby reducing food inflation to a certain extent.

    • http://shashidthakur23.blog.com Shashi Thakur

      nice attempt..

    • Sooraj Mehra

      APMC has also imposed many restrictions on the farmers.

    • Kamlesh Twari

      good job bro…

    • Nikhil Singh

      will fetch you atleast 5 out of 12 marks… these are very good marks according to UPSC level…