Agricultural Produce Market Committees (APMC) is the marketing boards established by the state governments in India in order to protect farmers from getting exploited by the trader & intermediaries who force the farmers to sell their produce at extremely low prices. APMC gave birth to the MSP(Minimum Support Price) regime which will ensure worthy prices and limit distress sale by the farmers.

Even now, there are few flaws in the APMC act which is exploiting the Agri environment & small farmers:

1. Farmer Payment Hindrance: There are traders who delay payments of farmers for weeks or months. Even If the payment is made at the time of sale, there are chances traders might deduct some amount stating excuses of non-payment from other parties.

2. Tax Evasion by Traders: In order to avoid tax, some traders don't endorse sales invoices to the farmers. Thus, it also creates trouble for small farmers to prove their income to get loans from banks

3. Narrow margins left for Farmers: On average, farmers usually receive 25%-33% on the final retail price.

4. High Price spread: Traders and middlemen receive a double commission benefit from both buyer and seller which is not even shared with farmers. Thus, making consumers pay for this spread.

credits
https://indianexpress.com/
https://www.thehindubusinessline.com/

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