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What's New Back
Salient Features

1.The Title of the Act is changed to highlight the objective of development of agricultural marketing in addition to its regulation under the Act. Accordingly, the Preamble of the Act is redrafted to provide for development of efficient marketing system, promotion of agri-processing and agricultural exports and to lay down procedures and systems for putting in place an effective infrastructure for the marketing of agricultural produce. (Section-1)

2.Legal persons, growers and local authorities are permitted to apply for the establishment of new markets for agricultural produce in any area. Under the existing law, markets are setup at the initiative of State Governments alone. Consequently, in a market area, more than one market can be established by private persons, farmers and consumers. (Section-3)

3.There will be no compulsion on the growers to sell their produce through existing markets administered by the Agricultural Produce Market Committee (APMC). However, agriculturist who does not bring his produce to the market area for sale will not be eligible for election to the APMC. (Section-14)
4.Separate provision is made for notification of 'Special Markets' or 'Special Commodities Markets' in any market area for specified agricultural commodities to be operated in addition to existing markets. (Section-20)

5.The APMC have been made specifically responsible for:
ensuring complete transparency in pricing system and transactions taking place in market area;
providing market-led extension services to farmers;
ensuring payment for agricultural produce sold by farmers on the same day;
promoting agricultural processing including activities for value addition in agricultural produce;
and publicizing data on arrivals and rates of agricultural produce brought into the market area for sale. Setup and promote public private partnership in the management of agricultural markets. (Section -26 & 27)
6.Provision made for the appointment of Chief Executive Officer of the Market Committee from among the professionals drawn from open market. (Section-36)
7. A new Chapter on 'Contract Farming' added to provide for compulsory registration of all contract farming sponsors, recording of contract farming agreements, resolution of disputes, if any, arising out of such agreement, exemption from levy of market fee on produce covered by contract farming agreements and to provide for indemnity to producers' title/ possession over his land from any claim arising out of the agreement. (Chapter-VII)
8.Model specification of contract farming agreements provided in the Addendum to the model law.
9.Provision made for direct sale of farm produce to contract farming sponsor from farmers' field without the necessity of routing it through notified markets. (Chapter-VII)
10.Provision made for imposition of single point levy of market fee on the sale of notified agricultural commodities in any market area and discretion provided to the State Government to fix graded levy of market fee on different types of sales. (Section-42)
11.Licensing of market functionaries is dispensed with and a time bound procedure for registration is laid down. Registration for market functionaries provided to operate in one or more than one market areas. (Section-44)
12.Commission agency in any transaction relating to notified agricultural produce involving an agriculturist is prohibited and there will be no deduction towards commission from the sale proceeds payable to agriculturist seller. (Section-44(6))
13.Provision made for the purchase of agricultural produce through private yards or directly from agriculturists in one or more than one market area. (Section-45)
14.Provision made for the establishment of consumers'/ farmers' market to facilitate direct sale of agricultural produce to consumers. (Section-46)
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