UPSC Prelims 2015 Q24: Indian Economy – Agriculture & Rural Development
In India, markets in agricultural products are regulated under the
- (a) Essential Commodities Act, 1955
- (b) Agricultural Produce Market Committee Act enacted by States
- (c) Agricultural Produce (Grading and Marking) Act, 1937
- (d) Food Products Order, 1956 and Meat and Food Products Order, 1973
Answer: (b) Agricultural Produce Market Committee Act enacted by States
Explanation
Regulation of markets in agricultural products
Agricultural marketing is a State subject.
Each State has its own Agricultural Produce Market Committee (APMC) Act.
| Feature of the APMC system | Detail |
|---|---|
| Market yards (mandis) | Notified by the State |
| Sale | By open auction to licensed traders |
| Fee | Market fee charged on the sale |
| Reform | Model APMC Act, 2003; e-NAM from 2016 |
The other laws:
| Law | Purpose |
|---|---|
| Essential Commodities Act, 1955 | Controls stocks and supply of essential goods |
| Agricultural Produce (Grading and Marking) Act, 1937 | AGMARK quality grades |
| Food Products Order and Meat and Food Products Order | Quality of processed food; now under the FSSAI law |
Answer: (b) Agricultural Produce Market Committee Act enacted by States.
Why each option is right or wrong
- (a) Incorrect. The Essential Commodities Act, 1955 controls stocks, not markets.
- (b) CORRECT. Markets are regulated under the APMC Acts enacted by States.
- (c) Incorrect. The 1937 Act deals with grading and the AGMARK label.
- (d) Incorrect. The Food Products Order dealt with quality of processed food.
Key point
Agricultural markets: regulated by State APMC Acts (mandis, licensed traders, market fee); reforms through the Model Act 2003 and e-NAM.
Remember
Mandis are regulated by State APMC Acts.
Common mistakes
- Choosing the Essential Commodities Act, which is about hoarding and supply.
- Thinking agricultural marketing is a Union subject.
- Confusing grading (AGMARK) with regulation of markets.
Exam tip
APMC = mandi. Essential Commodities Act = stock limits. 1937 Act = AGMARK.
Sources
- Ministry of Agriculture and Farmers Welfare — Model Agricultural Produce Marketing (Development and Regulation) Act, 2003
- NCERT Class XI — Indian Economic Development (Rural Development: agricultural marketing)