Although the APMC regulations were designed to safeguard the interests of the farmers, the actual implementation of these regulations has remained far from ideal and several problems in the functioning of the APMC markets persist. It has been found that commission agents and Marketing Committee members often form cartels and collude to manipulate prices. Given the inadequacy of formal-sector credit, particularly for small peasants, it is common for the traders and commission agents to provide credit to farmers and tie crop sales with repayment of credit, charging a high rate of interest from the farmers.
'Political Economy of Agricultural Market Reforms: Analysis of the Farming Produce Trade and Commerce (Promotion and Facilitation) Act, 2020', Vikalp