Question map
Not attempted Correct Incorrect Bookmarked
Loading…
Q24 (IAS/2015) Economy › Agriculture & Rural Economy › Agricultural marketing reforms Official Key

In India, markets in agricultural products are regulated under the

Result
Your answer:  ·  Correct: B
Explanation

Agricultural markets in most parts of the country are established and regulated under the State APMC Acts.[2] The whole geographical area in a State is divided into various market areas/mandis wherein each market is managed by a Market Committee constituted by the State Government.[2] The Act states that the first sale of agricultural commodities produced in the region such as cereals, pulses, edible oilseed, fruits and vegetables and even chicken, goat, sheep, sugar, fish etc. can be conducted only under the aegis of the APMC through the commission agents licensed by the APMCs setup under the Act.[2]

While the Essential Commodities Act, 1955 empowers the government to control production, supply and distribution of essential commodities, it does not specifically regulate agricultural markets. The Agricultural Produce (Grading and Marking) Act, 1937 provides for grading and marking of agricultural produce and introduced[3] a[4] standardized quality certification system known as AGMARK, rather than regulating markets. The Meat Product Order was promulgated under section 3 of Essential Commodities Act 1955 in the year 1973,[5] which relates to product standards rather than market regulation.

Sources
  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
  3. [3] https://damb.delhi.gov.in/damb/agricultural-produce-grading-and-marking-act-1937
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
50%
got it right
PROVENANCE & STUDY PATTERN
Full view
Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. In India, markets in agricultural products are regulated under the [A] Essential Commodities Act, 1955 [B] Agricultural Produce Market …
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 4/10 · 6/10

This is a 'Sitter' question derived from fundamental Indian Economy basics. It tests the elementary distinction between laws that govern 'market venues' (APMC) versus laws that govern 'commodity supply' (ECA) or 'product quality' (AGMARK). If you confuse these, your core Agriculture module needs a reboot.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Does the Essential Commodities Act, 1955 regulate markets in agricultural products in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Introduction: > p. 367
Presence: 5/5
“While India is a market economy where prices are ostensibly decided by demand and supply, ECA empowers the Centre to intervene in the market to protect consumer interests. This Act empowers the Central Govt. and under the delegated powers, the State Governments/UT Administrations to regulate production, distribution, pricing and other aspects of trading in respect of the commodities declared as essential in order to make them available to consumers at fair prices. The list of items under the Act includes drugs, fertilisers, foodstuffs, petroleum and petroleum products, hank yarn, raw jute and seeds of food crops/fruits/vegetables, [Food crops including Sugarcane and Sugar are also regulated through this act].”
Why this source?
  • Explicitly states ECA empowers Centre (and delegated State/UT) to regulate production, distribution, pricing and other aspects of trading in declared essential commodities.
  • Specifies list includes foodstuffs and seeds of food crops/fruits/vegetables (directly linking ECA to agricultural products).
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 27: INTER-STATE RELATIONS > II. Freedom of Inter-state Trade and Commerce > p. 408
Presence: 4/5
“By virtue of this power, Parliament has enacted the Essential Commodities Act, 1955, which empowers, 'in the interest of the general public', the Central Government to control the production, supply and distribution of certain 'essential commodities', such as coal, cotton, iron and steel, petroleum. • (b) Even discriminatory or preferential provisions may be made by Parliament, for the purpose of dealing with a scarcity of goods arising in any part of India [Article 303(2)]. • (c) Reasonable restrictions may be imposed by a state "in the public interest" [Article 304(b)]. • (d) Non-discriminatory taxes may be imposed by a state on goods imported from other states or Union Territories, similarly as on intra-State goods [Article 304(a)]”
Why this source?
  • Affirms Parliament enacted ECA to empower Central Government to control production, supply and distribution of certain essential commodities.
  • Frames the ECA as a statutory basis for central control 'in the interest of the general public', supporting regulatory authority over commodities.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
Presence: 3/5
“Agricultural Markets in most parts of the country are established and regulated under the State APMC Acts. The whole geographical area in a State is divided into various market areas/ mandis wherein each market is managed by a Market Committee constituted by the State Government. Once a particular area is declared a market area and falls under the jurisdiction of a Market Committee, no person or agency is allowed freely to carry on wholesale marketing activities outside the market. The Act states that the first sale of agricultural commodities produced in the region such as cereals, pulses, edible oilseed, fruits and vegetables and even chicken, goat, sheep, sugar, fish etc. can be conducted only under the aegis of the APMC through the commission agents licensed by the APMCs setup under the Act.”
Why this source?
  • Describes that agricultural markets are usually established and regulated under State APMC Acts, highlighting the practical interplay/limits between central acts like ECA and state market regulation.
  • Helps qualify the scope of ECA by showing state-level market regulation is the norm for mandis/wholesale markets.
Statement 2
Do state Agricultural Produce Market Committee (APMC) Acts regulate markets in agricultural products in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
Presence: 5/5
“Agricultural Markets in most parts of the country are established and regulated under the State APMC Acts. The whole geographical area in a State is divided into various market areas/ mandis wherein each market is managed by a Market Committee constituted by the State Government. Once a particular area is declared a market area and falls under the jurisdiction of a Market Committee, no person or agency is allowed freely to carry on wholesale marketing activities outside the market. The Act states that the first sale of agricultural commodities produced in the region such as cereals, pulses, edible oilseed, fruits and vegetables and even chicken, goat, sheep, sugar, fish etc. can be conducted only under the aegis of the APMC through the commission agents licensed by the APMCs setup under the Act.”
Why this source?
  • Directly states that agricultural markets in most parts of the country are established and regulated under State APMC Acts.
  • Describes market areas/mandis managed by State‑constituted Market Committees and licensing of commission agents under the Act.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGRICULTURAL MARKETING > p. 324
Presence: 4/5
“There are two types of agricultural markets: • Unregulated Markets: There is no set of rules and regulations to conduct a business. These markets suffer from defects in functioning. For example, Rural Haat. • Regulated Markets: Rules and regulations of business are controlled by statutory market organizations in this case. Here market charges are standardised and fixed and the practices are regulated by Agricultural Produce Market Committee (APMC).”
Why this source?
  • Defines 'regulated markets' as those whose rules and practices are controlled by statutory market organisations (APMC).
  • Contrasts regulated markets with unregulated ones, implying APMC role in standardising charges and practices.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Challenges in APMC Act, 2003 > p. 325
Presence: 3/5
“9.39 Agriculture • Fragmentation of State into multiple market areas, each administered by the separate APMC. · Multiple levy of mandi fees, requirement for multiple license for trading in different APMCs. d) No specific charges for storage service for horticulture produce, storing like other produce · causes damage to horticulture produce which are highly perishable.\alpha Till now, around only 22 States have adopted it (agriculture being a State subject).”
Why this source?
  • Discusses administrative fragmentation of States into multiple market areas each administered by separate APMCs, indicating state-level regulatory framework.
  • Notes that adoption is at State level (around 22 States adopted), reinforcing APMC as a state subject/regime.
Statement 3
Does the Agricultural Produce (Grading and Marking) Act, 1937 regulate markets in agricultural products in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Act No. 1 of 1937 (as amended upto 1986) An Act to provide for the grading and marking of agricultural and other produce."
Why this source?
  • The passage states the Act's purpose explicitly as grading and marking, not market regulation.
  • The title and opening description tie the law to quality/marking functions rather than market administration.
Web source
Presence: 5/5
"the Agricultural Produce (Grading and Marking) Act, 1937 introduced...a standardized quality certification system known as AGMARK."
Why this source?
  • Explains the 1937 Act introduced AGMARK, a standardized quality certification system for agricultural produce.
  • Emphasizes the Act's role in quality standards and certification rather than in regulating market structures.
Web source
Presence: 4/5
"Agricultural Produce Market Committee Act enacted by States✔"
Why this source?
  • Lists the Agricultural Produce Market Committee (APMC) Act as the correct regulator of agricultural markets, distinguishing it from the Grading and Marking Act.
  • Provides contrast showing market regulation is attributed to APMC laws, not the 1937 grading/marking law.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 329
Strength: 3/5
“• 2. In India, markets in agricultural products are regulated under the [2015] • (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• 3. With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements: [2016] • (i) Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.• (ii) This scheme covers post-harvest losses arising out of cyclones and unseasonal rains Which of the statements given above is/are correct? • (a) (i) only• (b) (ii) only• (c) Both (i) & (ii)• (d) Neither (i) nor (ii)• 4.”
Why relevant

The MCQ lists possible laws that regulate agricultural markets and places the Agricultural Produce (Grading and Marking) Act, 1937 as one of the options alongside the APMC Acts and Essential Commodities Act, implying a question about which actually regulate markets.

How to extend

A student could note this framing and compare authoritative descriptions of each option (e.g., APMC Acts) to infer which is primarily a market-regulation statute versus a standards statute.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGMARK > p. 326
Strength: 5/5
“It is a certification mark for agricultural products in India, assuring that they conform by a set of standards approved by the Directorate of Marketing and Inspection, an attached office of the Department of Agriculture, Cooperation and Farmers Welfare under the Ministry of Agriculture & Farmers Welfare. The AGMARK Head Office is at Faridabad (Haryana). It is legally enforced in India by the Agricultural Produce Act of 1937.”
Why relevant

States that AGMARK is legally enforced by the Agricultural Produce Act of 1937, indicating the Act concerns certification/standards (grading/marking) for produce rather than market administration.

How to extend

Combine this with knowledge that certification/standard acts typically regulate quality labels, not market governance, to suspect the 1937 Act is about standards not market regulation.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
Strength: 5/5
“Agricultural Markets in most parts of the country are established and regulated under the State APMC Acts. The whole geographical area in a State is divided into various market areas/ mandis wherein each market is managed by a Market Committee constituted by the State Government. Once a particular area is declared a market area and falls under the jurisdiction of a Market Committee, no person or agency is allowed freely to carry on wholesale marketing activities outside the market. The Act states that the first sale of agricultural commodities produced in the region such as cereals, pulses, edible oilseed, fruits and vegetables and even chicken, goat, sheep, sugar, fish etc. can be conducted only under the aegis of the APMC through the commission agents licensed by the APMCs setup under the Act.”
Why relevant

Explains that agricultural markets in most parts of India are established and regulated under State APMC Acts, describing market-area division, licensing, and first-sale rules.

How to extend

A student can contrast this explicit market-regulation role of APMC Acts with the 1937 Act’s role (from snippet 2) to judge which law regulates markets.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGRICULTURAL MARKETING > p. 324
Strength: 4/5
“There are two types of agricultural markets: • Unregulated Markets: There is no set of rules and regulations to conduct a business. These markets suffer from defects in functioning. For example, Rural Haat. • Regulated Markets: Rules and regulations of business are controlled by statutory market organizations in this case. Here market charges are standardised and fixed and the practices are regulated by Agricultural Produce Market Committee (APMC).”
Why relevant

Defines 'Regulated Markets' as those controlled by statutory market organizations (APMC), reinforcing that market regulation is commonly the province of APMC-type laws.

How to extend

Use this general rule to infer that an Act described elsewhere as enforcing a certification mark is less likely to be the primary regulator of market structure and trade practices.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > The following are some of the important features of the model Act: > p. 316
Strength: 4/5
“The idea is to remove disincentives for farmers and traders to trade across the country. (Presently a trader requires separate licenses for trading in each mandi and the mandi charges are levied several times if the produce moves through several markets) The law also proposes a cap on levy of market fees at 2% of sale price for fruits and vegetables and 1% for food grains.• Other proposals in the model 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.”
Why relevant

Mentions grading and standardisation as elements in a model market Act intended to promote national markets, implying grading is a component to facilitate trade rather than the core mechanism that sets market rules.

How to extend

Combine this with snippet 2’s identification of the 1937 Act as about AGMARK to conclude the 1937 Act’s grading function supports markets but is distinct from market-regulation authority.

Statement 4
Does the Food Products Order, 1956 regulate markets in agricultural products in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Agricultural Produce Market Committee Act enacted by States✔"
Why this source?
  • Explicitly identifies the Agricultural Produce Market Committee (APMC) Acts enacted by States as the regulator for markets in agricultural products.
  • Lists 'Food Products Order, 1956' separately (as an option), implying it is not the primary instrument cited for market regulation.
Web source
Presence: 4/5
"establishing comprehensive standards for the production, processing, and distribution of meat products across India."
Why this source?
  • Shows food control orders (e.g., Meat Food Products Order 1973) set standards for production, processing and distribution rather than regulating agricultural markets.
  • Supports the distinction between market regulation (APMC) and product/control orders (food processing/standards).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 329
Strength: 4/5
“• 2. In India, markets in agricultural products are regulated under the [2015] • (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• 3. With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements: [2016] • (i) Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.• (ii) This scheme covers post-harvest losses arising out of cyclones and unseasonal rains Which of the statements given above is/are correct? • (a) (i) only• (b) (ii) only• (c) Both (i) & (ii)• (d) Neither (i) nor (ii)• 4.”
Why relevant

Presents a multiple-choice list asking which laws regulate markets in agricultural products and includes 'Agricultural Produce Market Committee Act enacted by States' and 'Food Products Order, 1956' as distinct options.

How to extend

A student could take the distinction in the options to check which of these is conventionally taught as the market-regulating instrument (hinting APMC Acts) using basic knowledge of which law governs mandi/market functions.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGRICULTURAL MARKETING > p. 324
Strength: 5/5
“There are two types of agricultural markets: • Unregulated Markets: There is no set of rules and regulations to conduct a business. These markets suffer from defects in functioning. For example, Rural Haat. • Regulated Markets: Rules and regulations of business are controlled by statutory market organizations in this case. Here market charges are standardised and fixed and the practices are regulated by Agricultural Produce Market Committee (APMC).”
Why relevant

Defines 'Regulated Markets' and explicitly names Agricultural Produce Market Committee (APMC) as the statutory body that controls market rules and charges.

How to extend

Combine this rule with information that APMC Acts are state laws to infer that market regulation is primarily via APMC, making it less likely a central 'Food Products Order' is the primary market regulator.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.7 FSS Act 2006 and FSSAI > p. 373
Strength: 4/5
“Introduction: The subject of "adulteration of foodstuffs and the production, supply and distribution of foodstuffs" comes under concurrent list. The various Central Acts like Prevention of Food Adulteration Act, 1954, Fruit Products Order 1955, Meat Food Products Order 1973, Vegetable Oil Products (Control) Order, 1947, Edible Oils Packaging (Regulation) Order 1988, De-Oiled Meal and Edible Flour (Control) Order, 1967, Milk and Milk Products Order, 1992 etc. were repealed after the enactment of Food Safety and Standards (FSS) Act 2006.”
Why relevant

Lists various Central Orders (Fruit Products Order 1955, Meat Food Products Order 1973, etc.) as instruments dealing with 'production, supply and distribution of foodstuffs' and notes they were later repealed by FSS Act 2006.

How to extend

A student could infer these Orders historically targeted production/standards/distribution of processed foods rather than statutory mandi/market governance, and check the scope of the 1956 Order accordingly.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Introduction: > p. 367
Strength: 3/5
“While India is a market economy where prices are ostensibly decided by demand and supply, ECA empowers the Centre to intervene in the market to protect consumer interests. This Act empowers the Central Govt. and under the delegated powers, the State Governments/UT Administrations to regulate production, distribution, pricing and other aspects of trading in respect of the commodities declared as essential in order to make them available to consumers at fair prices. The list of items under the Act includes drugs, fertilisers, foodstuffs, petroleum and petroleum products, hank yarn, raw jute and seeds of food crops/fruits/vegetables, [Food crops including Sugarcane and Sugar are also regulated through this act].”
Why relevant

Explains the Essential Commodities Act empowers central/state governments to regulate production, distribution and pricing of declared commodities (including foodstuffs).

How to extend

Use this to reason that market regulation can come from multiple instruments (ECA for declared commodities, APMC for local markets), so the Food Products Order would be one among several possible regulatory tools whose primary focus must be checked.

Statement 5
Does the Meat and Food Products Order, 1973 regulate markets in agricultural products in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Agricultural Produce Market Committee Act enacted by States✔"
Why this source?
  • Explicitly identifies the Agricultural Produce Market Committee Act (APMC) enacted by states as the regulator of markets in agricultural products.
  • Lists the Meat and Food Products Order, 1973 separately from the APMC, implying MFPO is not the primary market regulator.
Web source
Presence: 5/5
"The meat product order was promulgated under section 3 of Essential Commodities Act 1955 in the year 1973."
Why this source?
  • States that the Meat Food Products Order was promulgated under section 3 of the Essential Commodities Act, 1955 in 1973, showing it is a control/quality order under ECA.
  • Describes MFPO as covering meat product standards and implementation (licensing, inspections), indicating it regulates production/quality rather than agricultural markets.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.7 FSS Act 2006 and FSSAI > p. 373
Strength: 5/5
“Introduction: The subject of "adulteration of foodstuffs and the production, supply and distribution of foodstuffs" comes under concurrent list. The various Central Acts like Prevention of Food Adulteration Act, 1954, Fruit Products Order 1955, Meat Food Products Order 1973, Vegetable Oil Products (Control) Order, 1947, Edible Oils Packaging (Regulation) Order 1988, De-Oiled Meal and Edible Flour (Control) Order, 1967, Milk and Milk Products Order, 1992 etc. were repealed after the enactment of Food Safety and Standards (FSS) Act 2006.”
Why relevant

Lists the Meat Food Products Order, 1973 among central orders concerned with 'production, supply and distribution of foodstuffs' that were repealed by the FSS Act 2006.

How to extend

A student could infer MFPO dealt with regulatory controls over food production/distribution and check whether 'market regulation' (prices/market structures) falls within those powers or was left to other laws.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 329
Strength: 4/5
“• 2. In India, markets in agricultural products are regulated under the [2015] • (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• 3. With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements: [2016] • (i) Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.• (ii) This scheme covers post-harvest losses arising out of cyclones and unseasonal rains Which of the statements given above is/are correct? • (a) (i) only• (b) (ii) only• (c) Both (i) & (ii)• (d) Neither (i) nor (ii)• 4.”
Why relevant

Includes MFPO, 1973 as an option in a multiple‑choice question about which laws 'regulate markets in agricultural products', implying it is at least considered in the policy/regulatory universe for agricultural/food items.

How to extend

Combine this with knowledge of what each listed law actually covers (ECA, APMC, grading act, MFPO) to narrow which truly regulate 'markets' versus production/processing standards.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Introduction: > p. 367
Strength: 4/5
“While India is a market economy where prices are ostensibly decided by demand and supply, ECA empowers the Centre to intervene in the market to protect consumer interests. This Act empowers the Central Govt. and under the delegated powers, the State Governments/UT Administrations to regulate production, distribution, pricing and other aspects of trading in respect of the commodities declared as essential in order to make them available to consumers at fair prices. The list of items under the Act includes drugs, fertilisers, foodstuffs, petroleum and petroleum products, hank yarn, raw jute and seeds of food crops/fruits/vegetables, [Food crops including Sugarcane and Sugar are also regulated through this act].”
Why relevant

Explains that the Essential Commodities Act empowers regulation of production, distribution and pricing of declared commodities—gives a concrete example of a law explicitly regulating markets.

How to extend

Compare the scope of ECA (explicit market/regulation) with MFPO's described scope (production/supply/distribution) to judge whether MFPO likely included market regulation powers.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGRICULTURAL MARKETING > p. 324
Strength: 4/5
“There are two types of agricultural markets: • Unregulated Markets: There is no set of rules and regulations to conduct a business. These markets suffer from defects in functioning. For example, Rural Haat. • Regulated Markets: Rules and regulations of business are controlled by statutory market organizations in this case. Here market charges are standardised and fixed and the practices are regulated by Agricultural Produce Market Committee (APMC).”
Why relevant

Defines 'regulated markets' in agriculture as those controlled by statutory market organisations like APMCs, distinguishing market regulation from other kinds of food regulation.

How to extend

Use this distinction to test whether MFPO established or empowered market institutions (APMC‑type) or instead set product/processing standards.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 13: Food Processing Industry in India > 13.2Indian Economy > p. 408
Strength: 3/5
“The reasons to process food are as follows: • To convert the raw agricultural and animal husbandry produce into edible products; • To preserve the food items; • To extend its availability and provide accessibility to consumers; and • To add value to the products. In the food processing sector, India's rank is fifth in terms of exports, production and consumption. The following industries come under the ambit of the Ministry of Food Processing Industries (FPIs), Government of India (GOI): • a. Industries relating to processing and refrigeration of certain milk products, poultry and eggs, meat and meat products; • b.”
Why relevant

Shows that meat and meat products fall under government oversight (Ministry of Food Processing Industries), indicating sectoral regulation exists for meat products distinct from general agricultural market laws.

How to extend

A student could check whether such sectoral oversight historically included market regulation (prices/market entry) or focused on processing/quality standards like licensing.

Pattern takeaway: UPSC loves 'Legal Jurisdiction' questions in Economy. They often list Central Acts alongside a State Act to test if you know which tier of government regulates a specific sector (Agriculture = State Subject).
How you should have studied
  1. [THE VERDICT]: Sitter. Direct hit from any standard Economy text (Ramesh Singh, Vivek Singh, or NCERT Indian Economic Development).
  2. [THE CONCEPTUAL TRIGGER]: The 'Agricultural Marketing' chapter. Specifically, the legal framework governing Mandis vs. Price Controls.
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Regulatory Quartet': 1) Market Venue = APMC Acts (State); 2) Hoarding/Supply = Essential Commodities Act, 1955 (Centre); 3) Quality/Grading = AGMARK (1937 Act); 4) Safety/Hygiene = FSSAI Act, 2006 (repealed FPO 1955 & MFPO 1973).
  4. [THE STRATEGIC METACOGNITION]: Do not just memorize acronyms. Classify laws by function: Does it regulate the *place* of trade (APMC), the *volume* of trade (ECA), or the *quality* of the item (AGMARK)? This functional mapping prevents confusion in exam heat.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Scope & powers of the Essential Commodities Act (ECA), 1955
💡 The insight

References show ECA authorises central control over production, supply, distribution, pricing and trading of declared essential commodities, including food crops.

High-yield for polity/economy: ECA often appears in questions about food security, market intervention and central regulatory powers. Understand statutory scope, list of commodities and administrative reach to answer questions on market controls and emergency measures. Study by comparing ECA provisions with examples in the syllabus and practice MCQ/essay framing.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Introduction: > p. 367
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 27: INTER-STATE RELATIONS > II. Freedom of Inter-state Trade and Commerce > p. 408
🔗 Anchor: "Does the Essential Commodities Act, 1955 regulate markets in agricultural produc..."
📌 Adjacent topic to master
S1
👉 APMC Acts and state regulation of agricultural markets
💡 The insight

Evidence indicates most agricultural markets are established and regulated under State APMC laws, which govern mandis and first-sale arrangements.

Important for GS papers and current affairs: distinguishes state-market regulatory regime from central interventions. Useful for questions on market reforms, cooperative federalism and implementation challenges. Prepare by mapping state subjects vs central powers and studying APMC features and reforms.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Impact/Benefit > p. 316
🔗 Anchor: "Does the Essential Commodities Act, 1955 regulate markets in agricultural produc..."
📌 Adjacent topic to master
S1
👉 Centre vs State roles in agricultural marketing
💡 The insight

References highlight central legislative powers (ECA) to control essential commodities and the practical need for state adoption/implementation (model laws, APMC domain).

Crucial for UPSC: many questions probe federal distribution of legislative and executive powers, especially where both Centre and States act (e.g., food security, market reforms). Master constitutional provisions, statutes and case examples; practice balanced answers reflecting legal authority and ground-level implementation constraints.

📚 Reading List :
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 27: INTER-STATE RELATIONS > II. Freedom of Inter-state Trade and Commerce > p. 408
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Impact/Benefit > p. 316
🔗 Anchor: "Does the Essential Commodities Act, 1955 regulate markets in agricultural produc..."
📌 Adjacent topic to master
S2
👉 APMC Acts as State-level regulators of agricultural markets
💡 The insight

References explicitly describe agricultural markets being established and regulated under State APMC Acts and administered by State‑constituted Market Committees.

High-yield for UPSC questions on agricultural marketing law and federalism: explains which tier (State) enacts market regulation, links to policy debates on market reforms and Centre–State interplay. Prepare by studying state APMC provisions, jurisdictional issues, and examples of state adoption.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Challenges in APMC Act, 2003 > p. 325
🔗 Anchor: "Do state Agricultural Produce Market Committee (APMC) Acts regulate markets in a..."
📌 Adjacent topic to master
S2
👉 Regulated vs unregulated agricultural markets
💡 The insight

Evidence contrasts unregulated markets (no rules) with regulated markets governed by APMCs that standardise charges and practices.

Useful for questions on market efficiency, farmer welfare and reform proposals—helps analyse policy impacts of regulation vs liberalisation. Learn definitions, pros/cons, and state examples to answer comparative questions.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGRICULTURAL MARKETING > p. 324
🔗 Anchor: "Do state Agricultural Produce Market Committee (APMC) Acts regulate markets in a..."
📌 Adjacent topic to master
S2
👉 Central model laws and interaction with State APMC Acts
💡 The insight

Several references reference central model Acts (2003, 2017) and newer central legislation aiming to modify or prevail over State APMC frameworks.

Important for essay and polity questions on Centre–State legislative competence, model law adoption, and market reforms. Study chronology of model Acts, Centre's reform measures, and how States responded to evaluate reform dynamics.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.10 Contract Farming > p. 317
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.3 [Model] Agri Produce and Livestock Marketing Act 2017 > p. 316
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 > p. 316
🔗 Anchor: "Do state Agricultural Produce Market Committee (APMC) Acts regulate markets in a..."
📌 Adjacent topic to master
S3
👉 AGMARK and the Agricultural Produce (Grading and Marking) Act, 1937
💡 The insight

Reference [2] states AGMARK is legally enforced by the Agricultural Produce Act of 1937, indicating this Act's role in certification/standards (grading & marking) rather than market administration.

Distinguishes laws that set quality standards (certification) from laws that govern market institutions — a frequent UPSC test area. Master this to answer questions on statutory functions, institutional responsibilities, and policy reforms; study by mapping each law to its primary function (certification vs market regulation).

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGMARK > p. 326
🔗 Anchor: "Does the Agricultural Produce (Grading and Marking) Act, 1937 regulate markets i..."
🌑 The Hidden Trap

The Constitutional Root: 'Markets and Fairs' is Entry 28 in the State List, which is why APMC is a State Act. However, 'Trade and commerce in foodstuffs' is Entry 33 in the Concurrent List, which allows the Centre to enact the ECA. This specific tension was the core of the Farm Laws debate.

⚡ Elimination Cheat Code

Constitutional Common Sense: Agriculture is primarily a State Subject. Options A, C, and D are Central Acts. Option B explicitly mentions 'enacted by States'. Since local markets (mandis) are a state domain, B is the only constitutionally consistent answer.

🔗 Mains Connection

Mains GS3 (Agriculture & Supply Chain): The APMC Act created a monopoly of mandis, leading to the 'long supply chain' problem. Connect this to the need for e-NAM (National Agriculture Market) which attempts to unify these fragmented state-level markets into a single national grid.

✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2010 · Q74 Relevance score: 2.49

In India which of the following is regulated by the Forward Market Commission?

CDS-I · 2014 · Q8 Relevance score: 1.62

In India, mergers and acquisition of firms are regulated by

IAS · 2017 · Q33 Relevance score: 0.78

What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme ? 1. It is a pan-India electronic trading portal for agricultural commodities. 2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below :

IAS · 2018 · Q26 Relevance score: 0.48

India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

CDS-I · 2002 · Q98 Relevance score: 0.32

In terms of the value, which one of the following commodities accounted for the largest agricultural import by India during the year 1999-2000?