Maharashtra Waives APMC Fees To Boost Onion Procurement

The Maharashtra government has waived Agricultural Produce Market Committee (APMC) fees for two central agencies to support onion procurement. The decision applies to the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF).

The waiver is aimed at reducing transaction costs and improving procurement efficiency. It follows discussions between central and state authorities to address challenges faced by onion farmers.

Details Of APMC Fee Waiver

Under standard APMC rules, buyers are required to pay a market fee of 0.75% on the total transaction value. This cost translates to ₹75 for every ₹10,000 worth of procurement and ₹750 for a ₹1 lakh purchase.

The waiver eliminates this expense for NAFED and NCCF when procuring onions in Maharashtra. By removing the market fee, authorities aim to lower procurement costs and increase operational efficiency.

Implementation Under PSF Scheme

The exemption applies specifically to procurement carried out under the Price Stabilisation Fund (PSF) scheme. In a communication to the state marketing department, the cooperation, marketing and textiles ministry directed the implementation of the waiver.

The directive emphasised ensuring the smooth execution of procurement operations at APMCs. NAFED and NCCF have been assigned the responsibility to procure onions directly from farmers under this framework.

Policy Context and Government Coordination

The decision follows a review meeting chaired by Union Home and Cooperation Minister Amit Shah, focusing on farmer-related issues. It also aligns with outcomes from a high-level meeting held on May 27, 2026, involving state and Union leaders.

Key participants included Chief Minister Devendra Fadnavis and Union ministers Shivraj Singh Chouhan and Pralhad Joshi. The meeting approved direct procurement through APMCs, prompting the state government to remove associated fees.

Procurement Targets and Operational Urgency

The Union consumer affairs ministry has set a target of procuring 2 lakh tonnes of onions by June 30, 2026. Under this programme, NAFED and NCCF have each been assigned procurement of 1 lakh tonnes.

The initiative aims to strengthen buffer stocks and improve market intervention capabilities. The fee waiver is expected to accelerate procurement and help both agencies achieve their targets within the specified timeline.

Read More: Maharashtra Govt Announces ₹5,000 Crore Ladki Bahin Waiver.

Track the stock market in Hindi. Visit Angel One News for the latest market trends, insights, and share market news in Hindi.

Conclusion

The waiver of APMC fees represents a policy measure aimed at facilitating onion procurement and supporting farmers. By reducing transaction costs, the decision simplifies operations for central agencies working under the PSF scheme.

The move is part of coordinated efforts between the state and central governments to stabilise agricultural markets. It also reflects the urgency of meeting procurement targets within a defined timeline while addressing supply chain challenges.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.