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9th July 2021

9th July 2021: List

Agri Infra funds loans have been extended to  APMCs

News : The Cabinet has decided to allow state-run market APMCs to access financing facilities through its Agricultural Infrastructure Fund 

Aim: To calm the fears of protesting farmers that such market yards are being weakened by the new farm laws.

About the news:

  • Along with APMCs the scheme is also available to federations of cooperative organisations, Farmers Producers Organizations and self help groups.

  • The markets will also be allowed for interest subvention for loans up to ₹2 crore. APMCs will be allowed to access separate loans for different kinds of infrastructure projects to build cold storage, silos, sorting, grading and assaying units in their market yards.

  • Further the period of scheme was extended for two more years upto  2025-26.

  • The overall period of the scheme has been extended to 2032-33. 


The modifications in the Scheme will help in achieving a multiplier effect in generating investments and it will also ensure that the benefits reach small and marginal farmers. 

APMC Markets:

  • APMC stands for Agricultural Produce Market Committee (APMC), they are operating under the State Government since agricultural marketing is a State subject.

  • The APMC has mandis in the market area which regulates the notified agricultural produce and livestock. 

  • The aim of introduction of APMC was to limit the occurrence of Distress Sale by the farmers under the pressure and exploitation of creditors and other intermediaries.

  • They ensure worthy prices and timely payments to the farmers for their produce.

  • APMCs are  also responsible for the regulation of agricultural trading practices. 

  • The Benefits of APMCs are:

    • Elimination of Needless intermediaries 

    • Improvement in  market efficiency was observed through a decrease in market charges.

    • Protection of producer-seller interest.

Issues with the APMCs system:

  • The monopoly of APMC was observed in pricing and  it deprived farmers of better customers and consumers from original suppliers.

  • There are huge entry barriers such as License fees which are highly prohibitive. 

  • The agents in an APMC form a cartel and deliberately restraint from higher bidding. Agricultural Produce is procured at a lower price for the farmers and being sold at a higher price.

9th July 2021: Text
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