Odisha Cabinet Approves New Agricultural Marketing Law

On 14 July 2026, the Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, approved a proposal to enact a new agricultural marketing law in the state. The proposed legislation seeks to repeal the Odisha Agricultural Produce Markets (OAPM) Act, 1956, which has been in force since 1957.

Agricultural Marketing in India

Agricultural marketing in India covers the sale, purchase, storage, grading, processing, and transport of farm produce and livestock. State laws on agricultural markets regulate mandis, market fees, licences, and trading platforms for agricultural commodities.

Key Features of the Proposed Law

• The law removes geographical restrictions on the sale and purchase of agricultural produce and livestock within Odisha.
• The entire state will function as a single unified market under the proposed framework.
• The law provides for direct marketing, e-trading, and electronic auctions for agricultural transactions.
• The reform introduces a single-point levy of market fees and a state-wide single trading licence.
• Warehouses, cold storages, and silos will be declared market sub-yards under the new system.

Model Law and Market Reforms

The proposed Odisha law aligns with the Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017. The model law was framed by the Union Government to promote competitive agricultural markets, private investment, and wider market access for farmers. Market sub-yards, electronic auctions, and unified licensing are features associated with agricultural market reforms in several Indian states. These measures are used to expand trading options and reduce post-harvest losses through improved storage and logistics.

Important Facts for Exams

• The Odisha Agricultural Produce Markets (OAPM) Act was enacted in 1956 and came into force in 1957.
• The Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act was issued in 2017.
• A single trading licence allows a trader to operate across a wider market area under one authorisation.
• Electronic auctions are used in agricultural markets to conduct price discovery through digital bidding.

Market Terminology

A market yard is a designated place for regulated trade in agricultural produce. A market sub-yard is an additional notified trading point linked to the main market yard under state agricultural marketing laws.