Govt of India's attempt to revive unpopular reforms contained in the repealed farm laws

By Dr. Rajinder Chaudhary & Kavitha Kuruganti* 

The Draft National Policy Framework on Agricultural Marketing, released by the Ministry of Agriculture & Farmers’ Welfare on November 25, 2024, raises critical concerns for the future of Indian farmers. While the framework ostensibly aims to address the complexities of agricultural marketing, a closer examination reveals a concerted push towards de-regulation, leaving farmers vulnerable to corporate exploitation. This article provides an in-depth critique of the proposed policy and highlights its significant shortcomings.

1. Undermining Federalism and Farmer Participation

The draft acknowledges that agricultural marketing is a state subject under the Indian Constitution (Entry 18, List II, Seventh Schedule). However, contrary to its federal obligations, the Union Government has bypassed state governments in drafting this framework. Widespread consultations with state governments and farmer organizations should have been the foundation of this policy, but there is little evidence of such engagement.

2. Lack of Emphasis on Market Regulation

The policy’s silence on the regulation of agricultural markets is troubling. Effective regulation, supported by government oversight, is critical to prevent exploitation and ensure fair competition. The absence of this focus suggests a backdoor reintroduction of the repealed farm laws, which were widely opposed by farmers.

3. Ignoring Legal Guarantee of MSP

The demand for a legal guarantee of Minimum Support Price (MSP) has been a long-standing plea from farmers across India. However, the draft completely disregards this essential demand, undermining the stated vision of ensuring fair prices for farmers.

4. Insufficient Support for Infrastructure Development

While the framework stresses institutional reforms, it fails to provide clear commitments or financial support from the Union Government to bridge the significant gaps in marketing infrastructure. States cannot shoulder this responsibility alone, and the draft falls short in offering viable solutions.

5. Omissions on International Trade Policies

India’s international trade policies, including unpredictable export bans and reduced import duties, often harm farmers. The draft overlooks these critical issues, which are essential for protecting domestic agriculture. There is no commitment to align trade decisions with farmer welfare, nor is there any consideration of the implications of upcoming free trade agreements.

6. Failure to Address Data and Regulatory Gaps

The draft rightly identifies data unavailability in unregulated markets as a key issue. However, it offers no concrete measures to address these gaps. Promoting unregulated private markets without oversight exacerbates the problems, leaving farmers without protection.

7. Overlooking Evidence from Direct Market Models

The draft superficially acknowledges the lack of infrastructure for direct farmer-to-consumer markets but fails to draw on successful models like Rythu Bazaars in Andhra Pradesh. Evidence shows that investment in such infrastructure significantly benefits farmers, yet the policy lacks concrete proposals in this direction.

8. Inadequate Support for Farmer Producer Organizations (FPOs)

The framework’s focus on value chain-centric infrastructure does not prioritize Farmer Producer Organizations (FPOs) as central to these initiatives. Primary processing alone has proven insufficient for meaningful farmer benefits, yet this remains the policy’s limited approach.

9. Missed Opportunities in Organic Marketing

The policy mentions marketing organic produce but fails to propose segregated infrastructure or traceability systems essential for a robust organic supply chain. It shifts the entire responsibility to state governments without specifying how the Union Government will support this important initiative.

10. Revival of Repealed Farm Laws

Several provisions in the draft mirror the repealed farm laws, such as promoting private markets, deregulation of perishables, and direct purchase by corporations at the farm gate. These proposals ignore the resistance these laws faced, underscoring the policy’s intent to revive the same agenda through alternative means.

11. Questionable Reform Committee Proposal

The suggestion to form an “Empowered Agricultural Marketing Reform Committee” akin to the GST Council appears to be a tool to coerce states into compliance with Union Government policies, undermining genuine federal cooperation.

12. Skewed Focus on Ease of Doing Business

The draft prioritizes an index for “ease of doing agri-trade” but does not propose a similar mechanism for creating farmer-centric markets. This approach places corporate interests above farmer welfare.

13. Promotion of Contract Farming

The policy’s promotion of contract farming echoes provisions of the repealed farm laws. This move, resisted by farmers for undermining their interests, raises serious concerns about the government’s intentions.

Conclusion

The Draft National Policy Framework on Agricultural Marketing represents an attempt to revive the unpopular reforms contained in the repealed farm laws. It disregards the constitutional role of states, fails to address critical farmer demands such as a legal MSP guarantee, and neglects international trade issues affecting Indian agriculture. The Alliance for Sustainable & Holistic Agriculture (ASHA-Kisan Swaraj) strongly urges the Ministry of Agriculture & Farmers’ Welfare to withdraw this draft and initiate genuine consultations with all stakeholders to create a truly farmer-centric policy.

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*Co-Convenors, ASHA-Kisan Swaraj. This article is based on the authors' representation to Surendra K Singh, Dy. Agriculture Marketing Adviser and Convener of Drafting Committee, Department of Agriculture & Farmers' Welfare, Ministry of Agriculture & Farmers' Welfare Government of India.