States directed to remove all restrictions on movement of agricultural produce within a state, entire state should be declared a single market

The Government has taken several important steps to make improvements in the area of Agricultural Marketing. According to the Economic Survey 2014-15, the Department of Agriculture (DAC) has issued a comprehensive advisory to states to go beyond the provisions of the Model Act and declare the entire state a single market with one licence valid across the entire state and removing all restrictions on movement of agricultural produce within the state.

 In order to promote development of a common national market for agricultural commodities through e-platforms, the DAC has approved ₹ 200 crore for a central-sector scheme for promotion of national Agricultural Market through Agri-Tech Infrastructure Fund (ATIF) to be implemented during 2014-15 to 2016-17. Under the scheme, it is proposed to utilize the ATIF for migrating towards a national market through implementation of a common e-platform for agri-marketing across all states.

 On the request of the Central Government, a number of State Governments have exempted the marketing of fruits and vegetables from the purview of the APMC Act. The NCT of Delhi has taken the initiative in this direction by issuing a notification on 2 September, 2014, ending the regulation of fruits and vegetables outside redefined market yard/sub-yard area of the APMC, MNI, Azadpur, APMC, Keshopur, and APMC Shahdara. The small Farmers Agribusiness Consortium (SFAC) has taken the initiative for developing a kisan mandi in Delhi with a view to providing a platform to FPOs for direct sale of their produce to prospective buyers totally obviating or reducing unnecessary layers of intermediation in the process. They plan to scale their activities in other states based on the outcome of the experience of the Delhi kisan mandi.

Single market designation and e platform rollout to remove intra state trade restrictions and enable statewide licensing portability. The document directs states to remove movement restrictions and declare each state a single market with one licence valid statewide, and describes central sector funding from an Agri Tech Infrastructure Fund to implement a common electronic trading platform to create a national agricultural market, support exemptions from APMC regulation for certain produce, and promote direct market access for Farmer Producer Organizations to reduce intermediation.