03-Jan-2012

A Different View of APMC Mandis


Interesting insights into the role of APMC mandi system, which has been criticized for keeping the farmers from getting a fair price for their produce.  All in the name of the farmer:
A closer analysis also brings out a fundamental difference between mandis and private procurement channels. For instance, since ITC necessarily operates its choupals according to the corporation's changing business strategy, its procurement volumes change from season to season, and in some years may barely make an appearance in a particular market. Choupals also essentially function as post-harvest buying locations, procuring a single commodity at a time on the basis of variety and quality specifications. What is true for ITC is also true for government wheat procurement operations, which are limited in duration and location, and vary in volume. In contrast, the mandi stands out as the only physical marketplace currently open to all farmers around the year, dealing simultaneously with the sale of multiple commodities of variable quality by bringing together a range of licensed buyers of different sizes in an open auction. 

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