UPSC Prelims 2015 · Question 24 of 98

UPSC Prelims 2015 question on APMC Act Agricultural Markets

In India, markets in agricultural products are regulated under the

  1. Essential Commodities Act, 1955
  2. Agricultural Produce Market Committee Act enacted by States
  3. Agricultural Produce (Grading and Marking) Act, 1937
  4. Food Products Order, 1956 and Meat and Food Products Order, 1973
Show answer

Answer: B. Agricultural Produce Market Committee Act enacted by States

Verdict

The answer is the Agricultural Produce Market Committee Act enacted by States. Agricultural markets in India are regulated under State APMC legislation.

Analysis

Agriculture and markets within a State are State subjects, so each State enacts its own APMC Act, under which regulated market yards operate and traders are licensed. The Essential Commodities Act, 1955 is central legislation controlling stock, movement and prices of notified commodities, which is a different instrument. The Agricultural Produce (Grading and Marking) Act, 1937 provides the AGMARK quality certification framework. The Food Products Order and the Meat and Food Products Order concern processing and food safety standards, not market regulation.

Source

Economic Survey 2014-15, Chapter 8.

How to crack it

Sort the four statutes by what each actually controls: market operation, stock and price control, quality grading, and processing standards. Only one of those is market regulation. The constitutional layer helps too, since agricultural marketing is a State subject, and an option that names State enacted legislation is therefore structurally more likely for a market regulation question. APMC reform has been a running policy story, so the Act and its criticisms are worth carrying together.

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