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APMCs play an important role of price discovery essential for agricultural trade and production choices.
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The middlemen are a part of the larger ecosystem of agricultural trade, with deep links between farmers and traders.
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The preference for corporate interests at the cost of farmers’ interests and a lack of regulation in these non-APMC mandis are cause for concern.
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To understand the role of APMC, consider the example of Bihar.
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After Bihar abolished APMCs in 2006, farmers in Bihar on average received lower prices compared to the MSP for most crops.
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Despite the shortcomings and regional variations, farmers still see the APMC mandis as essential to ensuring the survival of MSP regime.