- Agricultural Markets are regulated under State APMC Acts.
- First sale of agricultural commodities can only be under APMC.
- Wholesalers, retailers, food processing companies cannot purchase directly from farmers.
- Farmers must sell their produce in these mandis.
- Different States levy different mandi charges, creating market distortion.
- Mandis are not integrated, leading to substantial transaction costs for inter-mandi movement.
- Traders in mandis form cartels, keeping prices low for farmers.
- Traders don’t reduce prices to consumers during peak season or pass benefits during lean season.