The entire State has been brought under the ambit of regulation. 146 APMCs have been established. Elections to the said APMCs are held regularly and thereby provided for democratic functioning of the APMCs. 

The State of Karnataka has been acclaimed as a pioneer in the field of Agricultural Marketing. Karnataka was the first State to allow the co-operative sector through NDDB for establishing National Integrated Produce Market namely SAFAL market. The said market has been exempted from the provisions of the KAPM(R) Act, 1966 and the Rules 1968.  The Model Act, 2003 formulated by the Government of India contains many progressive legislations introduced in the State of Karnataka. The Marketing legislation has been amended from time to time to incorporate the necessities arising in the field of Agricultural Marketing.  To take up the development of market yards wherein the infrastructure required for the marketing of notified agricultural produce which benefits and safe guards the farmers in terms of proper weighment, competitive price and free from exploitation and payment of price on the same day. For this purpose it has been made mandatory in the Act to the effect that the buying and selling of notified agricultural produce shall take place only in the market yards notified by the Director from time to time.


                        Rs.900 crores have been spent for development of market yards till date. A reasonable and good infrastructure has been developed in the State. To make use of the information technology for the benefit of stake-holders, KRISHI MARATA VAHINI web-site has been launched during 2001.  The prices prevailing in the day and the arrivals of the commodities to the market yards will be reported by all the APMCs online to the web-site.  The web-site has been formulated which is user friendly.  Government of India has in term developed on the lines of KRISHI MARATA VAHINI and launched AGMARKNET.  In the process the stake-holder can have the information of the prices and arrivals of commodities in the APMCs of the State as well as in the rest of the country.


                        To reap the benefits of liberalization, action has been taken to sanction licenses for electronic trading by establishing Spot Exchanges.  The premier institutions like NCDEX and Spot Exchange India Private Limited have been licensed. Contract Farming has been regulated under the Act which helps the processing industry.


                        The market fee structure has been rationalized. The State has been considered as one unit and the levy and collection market fee has been made at single point which makes that the market fee suffered goods     in one market is exempted from the payment of market fee in any of the APMCs in the State. To give impetus to the processing industry which in term fetch more value to the producer, the market fee levied on raw produce is exempted on the finished goods.