Previous Year Question
In India, markets in agricultural products are regulated under
the Essential Commodities Act, 1955
the Agricultural Produce Market Committee Acts enacted by States
the Agricultural Produce (Grading and Marking) Act, 1937
the Food Products Order, 1956 and the Meat and Food Products Order, 1973
Correct Answer: B
Detailed Solution
Agricultural marketing in India has traditionally been treated as a State subject. In the Seventh Schedule of the Constitution, the State List contains:
Entry 14—Agriculture.
Entry 28—Markets and fairs.
On this constitutional basis, State Governments enact laws governing Agricultural Produce Market Committees. The names and specific provisions of these laws may differ across States.
Under State APMC laws:
An area may be notified as a regulated market area.
Specified agricultural commodities may be declared notified produce.
Traders, commission agents and other market participants may require licences.
Market fees and other charges may be imposed.
Procedures for auction, weighing, payment and dispute resolution may be prescribed.
Rules may protect farmers from unfair deductions, incorrect weighing and exploitation.
The original objective of the APMC system was to provide regulated markets, facilitate transparent price discovery and control exploitative practices by intermediaries. Over time, however, entry restrictions, cartelisation, high charges and inadequate competition were reported in certain APMC markets.
Examination of the options:
Option (a): Essential Commodities Act, 1955—Incorrect
This Act empowers the Government to regulate the production, supply, distribution and trade of essential commodities and to impose stock limits. It is not the principal legislation establishing and administering agricultural markets.
Option (b): State APMC Acts—Correct
The sale and purchase of notified agricultural produce, market areas, licences and market fees have traditionally been regulated under APMC laws enacted by State Legislatures.
Option (c): Agricultural Produce (Grading and Marking) Act, 1937—Incorrect
This legislation concerns grading and marking of agricultural commodities through AGMARK. It does not primarily govern the establishment and administration of agricultural markets.
Option (d): Food Products and Meat Food Products Orders—Incorrect
These orders concerned quality, hygiene and licensing of processed food and meat products, not general agricultural-market regulation. Several earlier food-safety orders were subsequently subsumed under the Food Safety and Standards Act, 2006 framework.