Bhubaneswar, July 14: The State Cabinet on Tuesday approved the repeal of Odisha Agricultural Produce Markets (OAPM) Act, 1956 and to enact a new, comprehensive agricultural marketing legislation.

The proposed law seeks to establish a liberal, competitive and farmer-centric agricultural marketing system in the State. The proposal was placed before the Cabinet headed by Chief Minister Mohan Charan Majhi by the Cooperation Department.

The OAPM Act, which has been in force since 1957, was enacted to protect farmers from exploitation and to ensure fair price discovery. However, over the years, the existing market framework has become restrictive and monopolistic, limiting competition and private investment, and resulting in inefficiencies, inadequate market infrastructure, and a significant gap between the prices received by farmers and the prices paid by consumers.

The proposed legislation aims to address these structural challenges by reforming the agricultural marketing ecosystem in line with contemporary market requirements and national best practices.

According to an official release, the key reforms in the new legislation includes removal of geographical restrictions on the sale and purchase of agricultural produce and livestock; establishment of the State as a single unified market, promotion of direct marketing, e-trading and electronic auctions to expand market access, introduction of a single-point levy of market fee and a state-wide single trading licence, facilitation of inter-State trade and participation of private market yards, processors, exporters and bulk buyers and declaration of warehouses, cold storages and silos as market sub-yards to strengthen supply chains and reduce post-harvest losses.

The reforms proposed also include integration of small and marginal farmers through FPOs, Cooperatives, SHGs and aggregators and separation of regulatory and developmental functions, democratic governance of market committees and promotion of women's participation and development of modern market infrastructure, in line with the Gol Model Act, 2017.

The new legislation will ensure greater marketing freedom and improved price realisation for farmers, increased competition, transparency and efficiency in agricultural markets, reduced transaction costs and fewer intermediaries in the value chain, improved infrastructure, logistics and reduced post-harvest losses, enhanced private investment and innovation in agri-marketing, strengthened farmer integration with State and inter-State markets, leading to higher farm incomes and rural economic growth.

Due to this legal reform, Farmers of the State will benefit immensely.