The Odisha Cabinet has approved a new agricultural marketing law that seeks to dismantle geographical barriers and promote direct and digital trading. According to reports from GKToday and The Morning Standard, the legislation was approved on 14 July 2026, chaired by Chief Minister Mohan Charan Majhi, and will replace the decades-old Odisha Agricultural Produce Markets (OAPM) Act, 1956, which has been in force since 1957. The new framework, proposed by the Cooperation Department, will transform how farm produce and livestock are bought and sold in the state by creating a more competitive, transparent and farmer-centric marketplace. As reported by Dinalipi News, Chief Secretary Anu Garg confirmed that the OAPM Act, which came into force in 1957, was originally enacted to protect farmers from exploitation and ensure fair price discovery, but has become restrictive and monopolistic over the years, limiting competition and private investment while leading to inadequate market infrastructure and a wide gap between the prices received by farmers and those paid by consumers.
The new law will allow greater participation by private market yards, processors, exporters and bulk buyers while promoting e-trading, e-auctions and direct marketing to improve competition and help farmers realise better prices. As reported by GKToday, the reforms will remove geographical restrictions on the sale and purchase of agricultural produce and livestock, effectively paving the way for Odisha to operate as a single unified market under the proposed framework. According to Dinalipi News, the legislation will also facilitate inter-state trade and encourage participation of private market yards, processors, exporters and bulk buyers. The system will reduce dependence on intermediaries and improve transparency across the agricultural value chain by enabling producers to connect directly with traders, processors, exporters and bulk buyers. Chief Secretary Anu Garg emphasized that this reform is aimed at liberalising agricultural trade and boosting farmers' incomes, as reported by The Morning Standard, highlighting the government's focus on economic benefits for the agricultural sector.
A significant addition to the new framework is the recognition of warehouses, cold storages and silos as market sub-yards to strengthen supply chains and minimise post-harvest losses. As reported by GKToday, this infrastructure development will be crucial for improving market access and reducing wastage in the agricultural supply chain. The reforms also focus on bringing small and marginal farmers into organised agricultural marketing through Farmer Producer Organisations (FPOs), cooperatives, self-help groups (SHGs) and other aggregators. The legislation will provide for separation of regulatory and developmental functions, democratic governance of market committees, increased participation of women and development of modern market infrastructure.
A major reform will be the introduction of a single-point levy of market fee and a statewide single trading licence. According to GKToday, this move is expected to simplify the regulatory process, reduce transaction costs and facilitate the seamless movement of agricultural commodities across different parts of Odisha. A single trading licence allows a trader to operate across a wider market area under one authorisation, reducing the need for multiple permits and streamlining operations. The legislation will also focus on bringing small and marginal farmers into organised agricultural marketing through Farmer Producer Organisations (FPOs), cooperatives, self-help groups and other aggregators.
The government expects the reforms to bring greater marketing freedom and improved price realisation for farmers while increasing competition, transparency and efficiency in agricultural markets. As reported by GKToday, the proposed Odisha law aligns with the Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, which was framed by the Union Government to promote competitive agricultural markets, private investment, and wider market access for farmers. The state government said the new law will strengthen the integration of farmers with both state and inter-state markets, potentially contributing to higher farm incomes and rural economic growth. According to Dinalipi News, the reforms are expected to reduce transaction costs, minimise the role of intermediaries, attract private investment and innovation, strengthen farmers' linkages with state and inter-state markets, and ultimately boost farm incomes and rural economic growth. Officials said the legal reform would significantly benefit farmers across the state by creating a more efficient, transparent and investment-friendly agricultural marketing ecosystem.
