In order to facilitate adequate investment for development of marketing infrastructure and supply chain including that by the private sector, the Ministry of Agriculture has circulated Model Agricultural Produce Marketing (Development and Regulation) Act (APMC Act) 2003 to all the States/Union Territories for their adoption.

The Model Act provides for contract farming, direct marketing, setting up of markets by private and cooperative sectors which is intended to improve the remuneration to the farmers for their produce through provision of efficient supply chain and reduction of intermediation in the marketing system.

The Government is providing assistance through various schemes such as Rashtriya Krishi Vikhas Yojana, National Horticulture Mission, Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization and Horticulture Mission for North East and Himalayan States (HMNEH) for development of marketing infrastructure and supply chain for agriculture commodities.

This information was given by Shri Arun Yadav, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.