Karnataka Cabinet clears Ordinance on APMC reforms

The Karnataka State Cabinet on May 14, 2020 approved APMC (Agricultural Produce Marketing) ordinance that removes restrictions on the sale of agricultural produce. The ordinance allows private individuals to set up trade markets where farmers can sell.

  • The ordinance seeks to amend the Karnataka Agricultural Produce Marketing (Regulation and Development) Act.
  • The powers of local APMCs will be restricted to the existing APMC yards (mandis), allowing farmers to sell their produce in the markets of their choice.
  • As per the state government, there was a time when APMCs (agricultural produce market committees) were the only markets where wholesalers and big businesses would go to. Now, we have decided to allow individuals to set up private markets and purchase. The objective is to give farmers the freedom to sell their materials directly by avoiding middlemen.
  • Madhya Pradesh and Gujarat have already made amendments to the APMC Act.
  • APMC means the Agricultural Produce & Livestock Market Committee established under the provisions of APLM Act.
  • Agricultural Produce Market Committee (APMC) Yard / Regulated Market Committees (RMC) Yard is any place in the market area managed by a Market Committee, for the purpose of regulation of marketing of notified agricultural produce and livestock in physical, electronic or other such mode.

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