Model Agricultural Produce and Livestock Marketing Act, 2017

Background:
  • In India, Agriculture is a state subject. Moreover all these matters like sale of Agriculture commodity from farm to mandies (wholesale Markets), falls under the state ambit.
  • So states have their own legislations on Agriculture and marketing of Agri goods.
  • But these states legislations (except for few states) are not functioning very well. There is a compulsion on the part of a farmer to sell its Agri- commodity through respective state mandies only.
  • In State mandies there are middle men who are licensed to sale or purchase Agri commodities.
  • There are large inefficiencies in state agriculture markets. Large no. of middle men are involved which are not allowing discovery of real prices for both the consumers as well as for Farmers.
  • This has caused persistent food inflation in the Economy, poor modernization of Post harvesting technologies, and low income of farmers.
The model Act
  • Central government thus has provided for a model Agriculture and Marketing Act to bring uniformity in the Agriculture marketing and to address the inefficiency. A state or UT government can adopt this model Act.
  • The model Act seeks to facilitate free flow of agricultural produce including livestock,
  • Provide a direct interface of farmers with the buyers and consumers, and create a barrier free single market in the country.
Key features of the Model Act:
  1. A state government may declare the whole state as a single unified market area.
  2. In such an area, a single license will be applicable for the trade of agricultural produce and livestock.
  3. Market Committee: A Market Committee will manage market yards in a specified area, and will be responsible for:
  • Regulating the auction of agricultural produce and livestock.
  • Providing facilities for marketing of agricultural produce and livestock.
  • The Committee may also link consumers with farmers through digital technology and manage these market yards through PPPs.
  1. Apart from market yards managed by the Market Committees, private market yards may be set up by private individuals to facilitate operations of traders, and commission agents.
The Market Committee shall levy a market fee from a buyer on sale of notified agricultural produce and livestock. This fee cannot exceed two percent ad valorem (estimated value of Goods) in case of nonperishable agricultural produce and one percent ad valorem (estimated value of goods) in case of perishable agricultural produce and livestock.

About the author: Aman Kumar

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