Mains Paper 3: Economy
Prelims level: APMC reforms
Mains level: Process to abolish the monopoly of agricultural produce market
Agriculture is a state subject under the Constitution, but the Green
Revolution wouldn’t have happened without the political leadership at the
Centre in 1966 approving the import of 18,000 tonnes of seeds of
high-yielding semi-dwarf wheat varieties from Mexico.
The same goes for the Narendra Modi government’s decision now to enact a
Central law to dismantle the monopoly of agricultural produce market
committee (APMC) mandis in the wholesale trading of farm commodities.
It’s all very well to say that “agriculture” and “markets and fairs”
fall under the State List of the Seventh Schedule. However, state
governments have done very little all these years to remove barriers to
trade in farm produce.
Having the freedom:
Farmers, like any businessmen, should have the freedom to sell their
produce to anyone, anywhere and anytime. This, in turn, is also contingent
upon processors, traders, retailers or exporters being able to buy directly
Unfortunately, most state APMC laws tod................................
The present government must make it clear that the objective behind its
proposed law is not to dismantle APMCs.
Farmers will continue to bring their produce to mandis that have good
infrastructure and where they are likely to find more buyers. But that
should be a matter of choice, both for farmers and buyers. APMC monopoly has
Initiative for APMC reforms should have come from states. But it is
welcome that Centre is now taking the lead.
Q1. With reference to the Micro, Small and Medium Enterprises (MSMEs),
consider the following statements: 1. Definition of MSME will be revised by raising the Investment limit. An
additional criteria of turnover also being introduced.
2. The distinction between manufacturing and service sector will be eliminated.
Which of the statements given above is/are correct? (a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2