Tds - regulated market committee(rmc)

On account of the recent rise in the price of potatoes, the Regulated Market Committees(RMC) were instructed to purchase potatoes from cold storages at  rates notified by the state government. These potatoes were then sold to the wholesalers for meeting customer demand. 

Now while the RMC makes payment for its potatoes purchased, does it deduct TDS under 94C if the payments exceed the stipulated amounts of Rs. 30,000 & Rs. 75,000.? 

If yes then should the RMC also deduct VAT?