Question 49 from UPSC CSE 2015 - Economy

Question

In India, markets in agricultural products are regulated under the

Accepted Answer

Correct Option: B. Agricultural Produce Market Committee Act enacted by States

Strategy: Focus on the phrase 'markets in agricultural products are regulated'. The Essential Commodities Act and grading/food orders deal with commodities or standards, but not direct regulation of markets. The APMC Acts, passed by states, specifically set up and regulate market yards and trading practices for agricultural produce. Thus, option B directly answers the mechanism for market regulation.

Key Info: **Agricultural Produce Market Committees (APMCs)**
Agricultural Produce Market Committees (APMCs) are statutory bodies established at the state level under respective APMC Acts for regulating notified agricultural markets. These Acts lay down rules for the establishment of market yards, registration of commission agents, traders, and auction procedures.

**Other Relevant Legislation**
- **The Essential Commodities Act, 1955:** Empowers the central government to control production, supply, and distribution of certain commodities. It does not regulate agricultural markets directly.
- **The Agricultural Produce (Grading and Marking) Act, 1937:** Governs the grading and marking of agricultural produce (e.g., AGMARK) to ensure quality standards, not market functioning.
- **Food Products Order, 1956 and Meat and Food Products Order, 1973:** Relate to quality control and licensing for the processing and manufacturing of food items.

**Key Points about APMC Acts**
- Require farmers to sell produce through regulated markets (mandis).
- Prevent exploitation of farmers by intermediaries.
- Enable transparent price discovery and standardization.

Market regulation thus refers specifically to the organization, supervision, and structures laid out in state-level APMC legislation, not general commodity control or grading acts.

Answer

Option A: Essential Commodities Act, 1955

Answer

Option C: Agricultural Produce (Grading and Marketing) Act, 1937

Answer

Option D: Food Products Order, 1956 and Meat and Food Products Order, 1973