UPSC Mains 2014 · GS III · Q3 · 12.5 marks · 200 words

There is also a point of view that Agricultural 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.

हिन्दी में

एक दृष्टिकोण यह भी है कि राज्य अधिनियमों के अधीन स्थापित कृषि उत्पादन बाज़ार समितियों (APMCs) ने भारत में न केवल कृषि के विकास को बाधित किया है, बल्कि वे खाद्यवस्तु महँगाई का कारण भी रही हैं। समालोचनापूर्वक परीक्षण कीजिए।

Agricultural Marketing Macroeconomic Indicators

How a topper answered the closest question

Toppers wrote this one in a test series: “Despite their flaws in limiting access to larger market and poor price realization for agricultural produce, APMCs have their utility. Analyse the statement and suggest reforms in agriculture marketing in the country.”

Raghav JhunjhunwalaAIR 4 · CSE 2025 · 169 wordsTheir whole copy

Opening · a figure

There are currently 7,000 APMCs functioning in the country which serve as the most crucial link between farmers and the market.

APMCs working mechanism:

Body · points and prose

Diagram

Farmers --MSP--> APMC --> market & Abroad (MSP + commission) <-- GoI -- APMC APMC involves: - Drying - Packaging - Grading

Role of APMCs

Giving immediate working capital to farmers; esp. small & marginal farmers.
Drying of harvest; Packaging into Jute Bags; Gradation facilities, etc.
Provide MSP to farmers and many-times Extension services (Choice of fertilizers; market price, etc.)
Registering at e-NAM Portal

Challenges of APMC

(1) Severe shortage 7,00,000 + villages in India and only 7,000 APMCs.

(2) Geographically concentrated in Rich states (like Punjab)

(3) Capacity Issues

Poor quality of Gradation
Poor packaging material used → Difficulty in further sales and marketing

(4) Wheat-Rice monopoly

(5) Small farmer generally forced to sell at APMCs

(6) Extremely big chain of Arhatiyas (middlemen)

Thus, the APMC needs immediate reforms: both structural (i.e. ending its monopoly) and also operational (improving its service delivery).

→ Thus, more funds and extension services along with monitoring by officials is the need today.

Close · a way forward

None written.

How toppers approach this question, and more on its topic: open the question.

Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2014, General Studies Paper III, Q3. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.