BHUBANESWAR: The state cabinet chaired by Chief Minister Mohan Charan Majhi on Tuesday approved proposal to repeal the Odisha Agricultural Produce Markets (OAPM) Act, 1956 and replace it with a new agricultural marketing law for creating a competitive, transparent and farmer-centric marketing system.
This reform is aimed at liberalising agricultural trade and boosting farmers’ incomes, said chief secretary Anu Garg in her post-cabinet briefing.
She said the OAPM Act, in force since 1957, was originally enacted to protect the farmers from exploitation and ensure fair price discovery. “However, the framework had become restrictive and monopolistic over time, discouraging competition and private investment while creating inefficiency, inadequate market infrastructure and a wide gap between the price received by the farmers and those paid by consumers. The new legislation aims to align state’s agricultural marketing system with contemporary market requirements and the Centre’s Model Agricultural Produce and Livestock Marketing Act, 2017,” she said.
Among the key reforms proposed in the new law is removal of geographical restrictions on the sale and purchase of agricultural produce and livestock for creating a unified statewide market. It will promote direct marketing, electronic trading and e-auctions to expand market access and improve price discovery, she informed.
The legislation will provide for a single-point levy of market fees and a single trading licence valid across the state while facilitating inter-state trade and encouraging participation by private market yards, processors, exporters and bulk buyers.
To strengthen post-harvest infrastructure, warehouses, cold storages and silos will be recognised as market sub-yards, helping reduce storage losses and improve supply chains. The proposed law also seeks to integrate small and marginal farmers through farmer producer organisations (FPOs), cooperatives, self-help groups and other aggregators.
The proposed legislation further separates regulatory and developmental functions, provides for democratic governance of market committees, encourages greater participation of women and promotes the development of modern market infrastructure.
“The reforms aim to enhance marketing freedom for farmers, improve price realisation, reduce transaction costs and dependence on intermediaries, attract greater private investment and innovation, and strengthen farmers’ integration with state and national markets,” the chief secretary said.