PRS · Ministry of Agriculture & Farmers Welfare ·

Changes in Agricultural Marketing laws across states

Distilled Policy Brief

  • Agriculture is a subject under the State List of the Constitution, with agricultural marketing in most states regulated by APMCs established under state legislation.
  • The central government released the model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, with the 15th Finance Commission recommending financial incentives for adopting states.
  • To reduce lockdown disruption, the Ministry of Agriculture launched new features on the e-NAM platform on April 2, 2020, while states including Madhya Pradesh and Gujarat promulgated ordinances to relax APMC laws.

🎯 Prelims High-Yield Examination Points

Agriculture falls under the State List of the Seventh Schedule of the Indian Constitution, making state governments responsible for enacting APMC reforms.

⚖️ Mains Analytical & Syllabus Linkages

Critically analyze how APMC market fragmentations hinder price discovery for farmers and how model market acts facilitate nationwide integration.

🎯 UPSC Prelims Practice Drill

Economy

With reference to agricultural marketing and recent reform frameworks in India, consider the following statements: 1. Agriculture and agricultural marketing are subjects categorized under the Union List of the Seventh Schedule of the Constitution of India. 2. The 15th Finance Commission recommended providing financial incentives for states that enact and implement the Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017. 3. The electronic-National Agriculture Market (e-NAM) platform includes features that provide for contactless remote bidding to reduce the need for physical presence in APMC mandis. Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 2 and 3 only
  • [C] 1 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [B] 2 and 3 only

Statement 1 is incorrect because agriculture is a subject under the State List of the Constitution, with agricultural marketing in most states regulated under state APMC legislation. Statement 2 is correct as the 15th Finance Commission recommended financial incentives for states implementing the Model Act of 2017. Statement 3 is correct because e-NAM features enable contactless remote bidding and digital payments, reducing the physical crowding of farmers and traders in APMC markets.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Constitutional Distribution of Legislative Powers: Agriculture and state trade fall under Entry 14 and Entry 28 of the State List (Seventh Schedule), limiting direct central statutory mandates on farm marketing without state concurrence.