The APMC Acts typically mandate that the produce be sold through open auctions or a system of closed bids. The FPTCA does not specify any such mechanism to be followed in trading areas, and the prices are to be solely determined by mutual agreement between a buyer and a seller. It is expected that, given tax advantages offered by FPTCA, private traders would shift to trading outside the APMC markets, and over time the auctions at the APMC markets could cease to be relevant for price discovery. The FPTCA also does not specify regulations for ensuring that farmers are not duped through unfair practices like use of non-standard weighing systems or through the imposition of excessive charges for various services. The dispute settlement mechanism specified in the Act would also work against the farmers as critical powers have been provided to the bureaucracy while elected representatives (in local bodies or State legislature) or organisations of farmers have no role. The disputes related to trade under the FPTCA cannot be challenged in the civil courts while higher judiciary will be beyond the reach of most farmers.
'Political Economy of Agricultural Market Reforms: Analysis of the Farming Produce Trade and Commerce (Promotion and Facilitation) Act, 2020', Vikalp
