MSP, Mandis and the Farm Laws
Mandis, Arhatiyas and the APMC System
Farmers sell in regulated mandis, where commission agents and market fees form part of the system, and critics say it limits competition.
The wholesale market structure.
APMC mandis
Agricultural Produce Market Committees regulate wholesale markets in each state.
Commission agents
Arhatiyas help farmers sell and often provide credit.
Fees
Market fees and commissions add to costs and fund market infrastructure.
Debate
Some argue the system protects farmers, while others say it limits competition.
A mandi day
A farmer brings wheat to the mandi, where it is weighed, auctioned and paid through the agent.
Ignoring the credit role of agents
They often lend to farmers.
Key takeaways
- Mandis are regulated markets.
- Agents lend and sell.
- Fees fund infrastructure.
- The system is debated.
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