Bhubaneswar: The state Cabinet on Tuesday approved a proposal to repeal the Odisha Agricultural Produce Markets (OAPM) Act, 1956 and replace it with a new law.
The proposed measure is a comprehensive agricultural marketing law aimed at creating a liberal, competitive and farmer-centric marketing system in the state.
The new legislation seeks to modernise Odisha’s agricultural marketing framework by removing long-standing restrictions on the sale and purchase of agricultural produce and livestock, while establishing the entire state as a single unified market, Chief Secretary Anu Garg told reporters after the Cabinet meeting.
The OAPM Act, which came into force in 1957, was originally enacted to protect farmers from exploitation and ensure fair price discovery. However, the state government said the existing framework has become restrictive and monopolistic over the years, limiting competition and private investment while leading to inadequate market infrastructure and a wide gap between the prices received by farmers and those paid by consumers.
The new law aims to address these structural challenges by
reforming the agricultural marketing ecosystem in line with current market requirements and the Government of India’s Model Agricultural Produce and Livestock Marketing Act, 2017.
Among the key reforms approved by the Cabinet are the removal of geographical restrictions on agricultural trade, promotion of direct marketing, electronic trading and e-auctions, and introduction of a single-point market fee along with a state-wide single trading licence.
It will also facilitate inter-state trade and encourage participation of private market yards, processors, exporters and bulk buyers. Warehouses, cold storages and silos will be recognised as market sub-yards to strengthen supply chains and minimise post-harvest losses.
To improve market access for small and marginal farmers, the law proposes greater integration through Farmer Producer Organisations (FPOs), cooperatives, self-help groups (SHGs) and aggregators. It also provides for separation of regulatory and developmental functions, democratic governance of market committees, increased participation of women and development of modern market infrastructure.
The reforms are expected to provide farmers with greater marketing freedom and better price realisation while increasing competition, transparency and efficiency in agricultural markets. The new framework is also expected to reduce transaction costs, minimise the role of intermediaries, attract private investment and innovation, strengthen farmers’ linkages with state and inter-state markets, and ultimately boost farm incomes and rural economic growth.
Officials said said the legal reform would significantly benefit farmers across the state by creating a more efficient, transparent and investment-friendly agricultural marketing ecosystem.