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APMC Full Form: Introduction, Structure, Benefits, Challenges

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Apmc Full Form

The Agricultural Produce Market Committee (APMC) is a statutory body established by the state governments in India with the aim of promoting fair trade and ensuring farmers are fairly compensated for their agricultural produce. Each state has its own APMC Act and operates several APMC markets within its jurisdiction.

Historical Context and Origin:

APMC was established to address the historical issues faced by farmers, including price exploitation and lack of organized marketing avenues. The need for a structured marketplace led to the establishment of APMCs, a significant milestone in agricultural reforms.

Function and Purpose:

The core function of APMC is to provide a platform for farmers to sell their produce and for traders to purchase it at competitive prices. It acts as an intermediary, overseeing the fair and transparent trading of agricultural commodities.

Structure and Organization of APMC

LevelComponentRoles and Functions
StateState Agricultural Marketing Board– Policy formulation and oversight of APMCs at the state level.
 State Agricultural Marketing Adviser– Advisory role in agricultural marketing policies.
DistrictDistrict Deputy/Assistant Director– Coordination and supervision of APMCs within the district.
 Market Committee (APMC)– Oversight and regulation of agricultural markets within its jurisdiction.
– Market administration.
 Chairman– Overall supervision of the APMC.
– Presides over APMC meetings and represents the APMC.
 Members (Elected and Nominated)– Representation of various stakeholders (farmers, traders, government) in decision-making and policy formation.
 Secretary– Administrative head of the APMC.
– Responsible for day-to-day operations, finance, and record-keeping.

Functioning of APMC Markets

  1. Market Infrastructure and Facilities: APMC markets are equipped with the necessary infrastructure, including auction halls, storage facilities, weighing scales, and other amenities required for the buying and selling of agricultural produce.
  2. Registration and Licensing: Traders, commission agents, and other market functionaries need to register and obtain licenses from the APMC to participate in trade within the market.
  3. Arrival of Agricultural Produce: Farmers bring their agricultural produce to the APMC market for sale. The produce is usually brought in vehicles and is received at the market yards.
  4. Auction Process: Agricultural produce is auctioned to registered traders and buyers. The auction process involves competitive bidding, where buyers bid for the produce, and the highest bidder gets the lot.
  5. Price Discovery: Prices for various agricultural commodities are determined through the auction process, ensuring transparency and fair value based on supply and demand dynamics.

APMC Acts and Regulations

Market Establishment and Administration– Formation of APMCs
– Composition and Structure of Market Committees
Market Operations and Procedures– Auction Procedures
– Market Fees and Charges
– Grading and Standardization
Licensing and Regulation– Licensing of Traders and Agents
– Role and Conduct of Intermediaries
Price Discovery and Control– Price Mechanisms
– Prevention of Exploitation
Marketing of Agricultural Produce– Regulation of Trade
– Direct Marketing
Market Fee and Revenue– Market Fee Structure
– Revenue Collection and Utilization
Quality Control and Grading– Quality Assessment Standards
– Compliance Monitoring
Dispute Resolution– Mechanisms for Dispute Resolution and Grievance Handling

Benefits and Challenges of APMC System


  1. Fair Price Discovery: APMC provides a platform for farmers to sell their produce through transparent auction mechanisms, ensuring fair and competitive prices.
  2. Market Infrastructure: APMCs establish and maintain market infrastructure, providing facilities like cold storage, warehousing, and transportation, which are essential for preserving the quality of agricultural produce.
  3. Payment Security: APMC ensures that farmers receive timely payments for their produce, enhancing their financial security and promoting continued agricultural activity.
  4. Quality Standards: APMCs enforce quality standards, grading, and certification, ensuring that consumers receive agricultural produce of a specified quality.


  1. Market Monopolies and Cartels: In some regions, APMCs can become dominated by a few powerful traders or cartels, limiting market competition and leading to unfair pricing practices.
  2. Market Fee and Charges: The imposition of market fees, commissions, and other charges on both buyers and sellers can sometimes be perceived as high, reducing the net income for farmers and traders.
  3. Restrictions on Direct Selling: APMC regulations often restrict farmers from directly selling their produce outside the APMC premises. This limits their ability to explore alternative markets or sell directly to consumers, potentially affecting their profitability.

Reforms and Modernization of APMC

Reform/Modernization EffortDescriptionBenefits
E-NAM (National Agriculture Market)An online trading platform that integrates APMC markets to create a unified national market for agricultural commodities.– Enables farmers to sell produce beyond local mandis.
– Enhances price discovery and transparency through online auctions.
– Reduces intermediaries, ensuring better prices for farmers.
Model APMC ActA framework provided by the government to guide states in reforming APMC laws.– Encourages private sector participation and investment in market infrastructure.
– Provides a framework for contract farming and direct marketing, benefiting both farmers and buyers.
Unified LicenseIntroduces a single unified license, allowing traders to operate in multiple APMCs with one license.– Simplifies the licensing process for traders, encouraging wider market participation.


The Agricultural Produce Market Committee (APMC) system is a cornerstone of India’s agricultural marketing landscape, designed to organize and streamline the trading of agricultural produce. Through its established network of regulated markets and committees, the APMC system has historically played a vital role in ensuring fair prices for farmers and facilitating transactions in a structured manner.

However, the APMC system has faced challenges, including market monopolies, complex procedures, and limited market access. To address these challenges and meet the evolving needs of the agricultural sector, significant reforms and modernization efforts have been initiated.


APMC stands for Agricultural Produce Market Committee. It is a statutory body established by state governments in India to regulate the marketing of agricultural produce.

APMC plays a crucial role in facilitating fair trade and ensuring farmers receive reasonable prices for their agricultural produce. It provides a platform for farmers to sell their produce and regulates market operations.

APMCs establish regulated marketplaces where farmers can bring their produce for sale. The produce is auctioned, and traders purchase it. APMC ensures fair practices, transparent pricing, and timely payments.

Benefits include fair price discovery, market infrastructure, regulatory oversight, payment security, quality standards, market information, and market diversification opportunities for farmers.

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