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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
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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
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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

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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.
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Statement analysis

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Statement analysis

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Statement analysis

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