The Agricultural Produce Market Committee (APMC) is a statutory body and a marketing board established by state governments in India, operating under the respective state's Agricultural Produce Marketing Regulation (APMR) Act. Since agricultural marketing is a State subject, each state has its own APMC Act. The concept of regulated markets originated during the British period, with the first established in Karanja, Maharashtra, under the Berar Cotton and Grain Market Act of 1887. Post-independence, the APMC system was widely adopted to protect farmers from exploitation by moneylenders and intermediaries, prevent distress sales, and ensure timely payment and fair prices.
The mechanism works by declaring a market area where the first wholesale sale of notified agricultural commodities must occur in designated market yards (mandis) under the APMC's supervision. Sales are typically conducted through open auctions by licensed commission agents, ensuring transparency and price discovery. APMCs generate revenue by charging a market fee from buyers and a licensing fee from agents.
The system connects to the Model APMC Act, 2003, and the subsequent Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, which were central government templates to encourage states to reform their laws. These Model Acts aimed to allow for private wholesale markets, direct purchase from farmers, and a single trading license across the state. The e-NAM (National Agriculture Market), an electronic trading portal, also connects APMC mandis to create a unified national market.
The most significant recent change was the introduction of the three central farm laws in 2020, which sought to allow farmers to sell produce outside APMC mandis without paying market fee or cess. However, these laws were repealed in November 2021 following widespread protests, leaving the core APMC structure intact in many states. State-level reforms continue, such as the Gujarat Agricultural Produce Markets (Amendment) Ordinance, 2020, and the repeal and reinstatement of APMC authority in Karnataka in May 2023.