The Agriculture Ministry has come up with a new model Agricultural Produce Market Committee (APMC) Act proposing single-point levy of market fee across a State and a united single trading licence for cost-effectiveness of transactions.

It has also suggested abolition of fragmentation of market with the State/Union Territory by removing the concept of notified market area insofar as enforcement of regulation by the Agricultural Produce and Livestock Market Committee (APLMC) is concerned.

“I am hopeful that most States would adopt (the model Act). Its implementation by States will help in fulfilling our Prime Minister’s dream of doubling farm income by 2022,” said Agriculture Minister Radha Mohan Singh at a press conference on Monday.

Addressing State Agriculture Ministers at a meeting on increasing farmers’ welfare on Monday, Singh said that so far, traditional markets had done well, but it was imperative for the mandis to adopt new marketing strategies to address the demands for marketing of increased and diversified agricultural marketable surplus.

“To meet the marketing sector challenges, the Agriculture Ministry has formulated APMC Act 2017 and it is being shared with the States for implementation,” Singh said.

The Centre has already asked States to modify their APMC Acts in order to have a single licence and single point of levy of market fee at the State level and then gradually move towards a single licence and single point of levy of market fee at the national level.

The idea is to remove disincentives for farmers and traders to trade across the country as they will not have to shell out more money.

States could then get integrated on the online platform e-NAM (e-National Agriculture Market) launched in April 2016 for online sale and purchase of commodities nationwide.

The Minister said that another important decision taken by the government is the formulation of the model contract farming law. It will help provide marketing infrastructure, developing marketing skills and in reducing risks associated with diversity of production.

Other proposals in the model APMC Act include promotion of national market for agriculture produce through provisioning of inter-State trading licence, grading and standardisation and quality certification, rationalisation of market fee and commission charges, provision for special commodity market yard and promotion of e-trading to increase transparency.

The model Act also calls for full democratisation of market committee and State/UT Marketing Board.