Home India AGRICULTURE AND FARMERS WELFARE Parliament Question: Regulatory oversight of APMCs...
Date: 2026-03-17 Category: LOKSABHA_QNA State: Union Government Country: India

Parliament Question: Regulatory oversight of APMCs

Issued by AGRICULTURE AND FARMERS WELFARE · Not Applicable

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GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 4127 TO BE ANSWERED ON THE 17TH MARCH, 2026 REGULATORY OVERSIGHT OF APMCs 4127. DR. AMOL RAMSING KOLHE: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state: (a) the current status of governance and regulatory oversight of Agricultural Produce Market Committees (APMCs) including the total number of functional APMCs and frequency of audits conducted during the last three years in the country, State/UT-wise particularly Maharashtra; (b) whether the Government has evaluated complaints related to lack of transparency, cartelisation, fee-related disputes and decision-making without farmer consultation in certain APMCs in Maharashtra, if so, the details thereof; (c) whether any central advisories, model guidelines or reform benchmarks have been issued to States to improve accountability and farmer participation in APMC functioning and if so, their adoption status, State/UT-wise particularly in Maharashtra; (d) whether the Government is aware of specific grievances raised by farmers and traders in Pune APMC and the remedial action taken thereon; and (e) the institutional measures proposed to ensure impartial supervision, grievance redressal and farmer-centric reforms in APMCs across the country, State/UT-wise particularly in Maharashtra? ANSWER THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI BHAGIRATH CHOUDHARY) (a): Agricultural Produce Market Committees (APMCs) are regulated by the respective State/UT Governments under their State APMC Acts and Rules. As per the information received from the Government of Maharashtra, there are 305 APMCs functioning in the State. Under Rule 116 of the Maharashtra Agricultural Produce (Development and Regulation) Rules, 1967, statutory audit of each APMC is required to be conducted annually. The procedure for appointment of auditors for statutory audit is prescribed in the Office Circular of Government of Maharashtra dated 27.03.2015. The status of statutory audit of APMCs in Maharashtra during the last three years is as follows: Year No. of APMCs Statutory Audit Completed Percentage (%) 2022–23 305 285 93% 2023–24 305 272 89% 2024–25 305 190 62%(b): As informed by Government of Maharashtra, in Maharashtra, the functioning of APMCs is governed by the Maharashtra Agricultural Produce (Development and Regulation) Act, 1963 and the Rules framed thereunder. The Act and Rules contain provisions empowering the competent authorities to address complaints relating to lack of transparency in APMC functioning, cartelisation, disputes related to market fee, and other operational issues. Further, the Act provides for an appeal mechanism whereby any aggrieved person or market functionary may file an appeal against decisions or orders passed by the competent authority. Accordingly, such complaints are examined and resolved by the concerned authorities from time to time. (c): Agricultural marketing is a State subject. However, in order to create an accessible marketing ecosystem and ensuring better price realization for farmers, the Department of Agriculture and Farmers Welfare (DA&FW) regularly coordinates with States to share best practices and facilitate trade, including through National Agriculture Market (e-NAM). Various States have carried out reforms such as establishment of private markets, promotion of direct marketing, declaration of warehouses/silos/cold storages as deemed market yards, introduction of e-trading platforms, single-point levy of market fee, provision of a single unified licence, rationalization of market fee and rationalization of commission charges, operationalisation of modules integrated with e-NAM (FPO module, e-NWR module, payment gateway features, platform of platforms, e-permit and farm-gate), recognition of trading licences of other State (reciprocity of trading licence), deregulation of fruits and vegetables, exemption of market fee for direct sales to processing units/factories by farmers/ FPOs at their premises, and exemption of market fee on produce brought from other States for processing, including the State of Maharashtra. (d): As informed by Government of Maharashtra, the Directorate of Marketing, Government of Maharashtra, Pune has received complaints regarding alleged malpractices and irregularities in issuance of purchase and sale licences, illegal allocation of shop spaces and other instances of mismanagement in APMC Pune. In this regard, an Inspection Committee was constituted under Section 40A of the Maharashtra Agricultural Produce (Development and Regulation) Act, 1963. The inspection has been completed and the Committee submitted its report on 27.02.2026. Based on the findings of the report, notices have been issued to the concerned parties under Rule 117(4) of the Maharashtra Agricultural Produce (Development and Regulation) Rules, 1967 for further necessary action. (e): The responsibility for regulation and supervision of APMCs primarily rests with the State/UT Governments. As reported by Government of Maharashtra, institutional measures aimed at improving transparency, accountability, grievance redressal mechanisms and farmer-centric reforms in APMCs have been initiated by the concerned State Governments in accordance with their respective APMC Acts and Rules. These measures include strengthening of audit systems, inspection mechanisms, grievance redressal processes and implementation of reforms based on the Model APMC framework. *****

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