History:-
Farmer has been exploited for many decades. The Mughals increased the tax, the British's zamindari system, and the increase in tax, etc. things was brought. Due to this, the farmers who used to be rich have now become poor. Now even money was needed to sow the crop, for this, the farmers would go to the moneylender and take money in loan, through this the farmers would sow the crop and when the crop was ripe, the moneylender would come to borrow money, the farmer had no money. Due to this, the moneylender would have taken more than half the crop. Due to this, the farmer was left with nothing to sell. After all this, the farmer would either commit suicide or would leave farming and do some other work. Out of this, most of the farmers used to get close to building the building.
The history of agriculture produce market regulation program in India dates back to the British period as raw cotton was the first farm produce to attract the attention of the Government due to the anxiety of British rulers to make available the supplies of pure cotton at reasonable prices to the textile mills of Manchester (UK) Consequently, the first regulated market (Karanja) under Hyderabad Residency Order was established in1886 in the Country and the first legislation was the Berar Cotton and Grain Market Act of 1887.
The government of India prepared a Model Bill in 1938 and circulated it to all the States but not much headway was made till independence. Later, most of the States enacted Agricultural Produce Markets Regulation (APMR) Acts during the sixties and seventies and put these in operation.
After several tens of thousands of years passed, in 2003 the government reform A.P.M.C. brought the law.
Advantages and disadvantages of apmc:-
1: - There is an auction room in apmc, in which farmers take their goods and in that room, the bidding is done by the brokers, in this bid the farmer sells his item to the one who bids the highest.
Disadvantages:-
But due to this, the farmer is harmed, many times the brokers fix the price among themselves that they will not speak more than this, which causes a lot of loss to the farmers.
2:- In apmc a farmer can get his soil quality checked.
3:- There are also retail shops in apmc, common people can also take vegetables and fruits from there.
4:- There are commission agents in apmc, only through him the farmer can sell his goods and there is no other way. The commission agent takes two and a half percent commission from the farmer and may also take two and a half percent commission from the buyer or less or more (not more than 6 percent from both the sides) can also take the commission. (This percentage is not the same in every state but varies between 2.5% to 6% in every state)
The advantage of a commission agent is that he also helps the farmer from whom he takes the goods at the time of his crisis, such as when he comes with the goods, loading and unloading the goods, quality checking of the goods, paperwork, etc.
5:- Market Committee is authorized to collect market fees ranging from 0.30% to 2.0%, from the buyers/traders on the sale of notified agricultural produce. In addition, commission charges are to be paid to commission agents which vary from 0.5% to 4.5% in food grains, and 3.0% to 7.0% in the case of fruit and vegetables.
6:- The licensing of commission agents in the regulated markets has led to the monopoly of these licensed traders acting as a major entry barrier in existing APMCs for a new entrepreneur thus, preventing competition. New licensing of commission agents requires space for shops within the market yards. As many of the market yards being established long back don’t have adequate space for the construction of shops, the issue of a new license is not encouraged in many cases. The traders, commission agents, and other functionaries organize themselves into associations, which generally do not allow easy entry of new persons, stifling the very spirit of competitive functioning. The many States do not permit the setting up of private markets, direct marketing, and contract farming which hinder competition and do not allow access to alternative marketing channels for the farmers.
Problem:-
1:- One is the problem of cartels. If they now fix the cartels together below the MSP price, what will happen to it that the farmer will have to sell the goods at that price even if he does not want to. Farmers cannot go anywhere else to sell these goods. Monopoly has been encouraged because of this law.
In order to reduce the exploitation of the farmers, the government had brought this APMC law, but due to this law, one was saved from exploitation and the other exploitation caught the farmers. But this exploitation is much less than the earlier exploitation.
2:- cascading
If you take potatoes for 50 rupees, then out of this the farmer gets only about 7 rupees (only 10% to 15% farmers get). The rest 43 rupees (approximately) go in fees.
Cost of tolling goods, transportation expenses, labor expenses, etc. All this comes in 6 rupees of that farmer.
1:- Market Fee (People who come to buy goods)
EX:- Like there is a 3% market fee in Punjab (before the law came into force).
2:- Rural Development Cess
EX:- In Punjab which is 3% (before the law came into force).
3:- Commissioned Officers Commission
EX:- Which is 2.5% (before the law came into force).
Cost of tolling other goods, transportation expenses, labor expenses, etc. All this comes in 6 rupees of that farmer.
After levying all these taxes, the goods became worth 10 rupees (approximately).
After deducting all these expenses, the wholesaler sells goods worth Rs 10 for Rs 15 - 20. Then the goods reach the vegetable vendor through several stages. And then he takes out his expenses and sells it to you.
Due to this, the goods become expensive. Due to this, both would have suffered a lot, a farmer away from common people like you.
M.S.P.:-
The full form of MSP is the Minimum Support Price (MSP).
MSP was started with the Green Revolution. Only 6% of the farmers are able to avail the benefit of MSP.
Agricultural Costs and Prices Commission works to fix the prices of MSP and then these prices go to the Cabinet Committee on Economic Affairs and this committee decides the prices. Twenty-two crops covered under MSP are Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-in-Shell, Soyabean, Sunflower, Sesame, Nigerseed, Cotton, Wheat, Barley, Gram, Lentil, Rapeseed/ Mustard, safflower, jute, and copra. Out of these 22 items, the government buys only 2 things:- Wheat, 2:- Rice, on the other 20 things, the government guarantees that no one can buy or sell less than this price. If APMC is unable to sell rice or wheat farmers, then that crop will go to the Food Corporation of India. The Food Corporation of India will buy that crop only at the cost of MSP.
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