Bhubaneswar: The Odisha cabinet, chaired by chief minister Mohan Charan Majhi, on Tuesday approved a proposal to enact a new agricultural marketing law and repeal the Odisha Agricultural Produce Markets (OAPM) Act, 1956, aiming to create a more liberal, competitive and farmer-centric agricultural marketing system in the state.Briefing media persons after the decision, chief secretary Anu Garg said the proposed legislation has been drafted keeping in view the changing needs of the agricultural sector and seeks to modernise the state’s marketing framework. The OAPM Act, in force since 1957, was enacted to protect farmers from exploitation and ensure fair price discovery. However, the govt said the existing framework has become restrictive and monopolistic over the years, limiting competition and private investment while resulting in inadequate market infrastructure and a wide gap between prices received by farmers and those paid by consumers.According to a govt statement, the proposed law seeks to address these structural challenges by reforming the agricultural marketing ecosystem in line with contemporary market requirements and national best practices. One of the key provisions is the removal of geographical restrictions on the sale and purchase of agricultural produce and livestock, paving the way for a single unified agricultural market across the state.The legislation also proposes promotion of direct marketing, e-trading and electronic auctions to expand market access, besides introducing a single-point levy of market fee and a state-wide single trading licence. Other major features include facilitation of inter-state trade and greater participation of private market yards, processors, exporters and bulk buyers. Warehouses, cold storages and silos will be declared market sub-yards to strengthen supply chains and reduce post-harvest losses. The proposed framework also seeks to integrate small and marginal farmers through Farmer Producer Organisations (FPOs), cooperatives, self-help groups and aggregators.The new law envisages separation of regulatory and developmental functions, democratic governance of market committees, greater participation of women and development of modern market infrastructure, in line with the Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017.The govt expects the reform to provide farmers with greater marketing freedom and improved price realisation while enhancing competition, transparency and efficiency in agricultural markets. It is also expected to reduce transaction costs and the role of intermediaries, improve infrastructure and logistics, attract private investment and innovation in agri-marketing, and strengthen farmers’ integration with state and inter-state markets.Officials said the proposed legal reform is expected to boost farm incomes and accelerate rural economic growth, benefiting farmers across the state.
