Question map
In India, markets in agricultural products are regulated under the
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] 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] 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] https://damb.delhi.gov.in/damb/agricultural-produce-grading-and-marking-act-1937
PROVENANCE & STUDY PATTERN
Full viewThis 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.
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?
- Statement 2: Do state Agricultural Produce Market Committee (APMC) Acts regulate markets in agricultural products in India?
- Statement 3: Does the Agricultural Produce (Grading and Marking) Act, 1937 regulate markets in agricultural products in India?
- Statement 4: Does the Food Products Order, 1956 regulate markets in agricultural products in India?
- Statement 5: Does the Meat and Food Products Order, 1973 regulate markets in agricultural products in India?
- 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).
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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.
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.
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.
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.
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.
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.
Defines 'Regulated Markets' as those controlled by statutory market organizations (APMC), reinforcing that market regulation is commonly the province of APMC-type laws.
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.
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.
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.
- 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.
- 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).
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.
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.
Defines 'Regulated Markets' and explicitly names Agricultural Produce Market Committee (APMC) as the statutory body that controls market rules and charges.
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.
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.
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.
Explains the Essential Commodities Act empowers central/state governments to regulate production, distribution and pricing of declared commodities (including foodstuffs).
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.
- 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.
- 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.
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.
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.
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.
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.
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.
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.
Defines 'regulated markets' in agriculture as those controlled by statutory market organisations like APMCs, distinguishing market regulation from other kinds of food regulation.
Use this distinction to test whether MFPO established or empowered market institutions (APMC‑type) or instead set product/processing standards.
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.
A student could check whether such sectoral oversight historically included market regulation (prices/market entry) or focused on processing/quality standards like licensing.
- [THE VERDICT]: Sitter. Direct hit from any standard Economy text (Ramesh Singh, Vivek Singh, or NCERT Indian Economic Development).
- [THE CONCEPTUAL TRIGGER]: The 'Agricultural Marketing' chapter. Specifically, the legal framework governing Mandis vs. Price Controls.
- [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).
- [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.
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.
- 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
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.
- 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
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.
- 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
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.
- 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
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.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGRICULTURAL MARKETING > p. 324
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.
- 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
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).
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGMARK > p. 326
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.
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 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.