The Central government recently released the draft National Policy Framework on Agricultural Marketing. The policy aims to create a competitive and transparent agricultural marketing ecosystem where farmers can access diverse markets and secure better prices. The framework highlights India’s agricultural sector growth, with achievements in food grains, oilseeds, and horticulture between 2016 and 2023.
However, it also points to challenges like fragmented landholdings, inadequate market access, and price volatility, which impact small and marginal farmers. The policy proposes allowing farmers to sell their produce across various platforms, including markets, private buyers, and directly to consumers. It promotes private investment in market infrastructure and encourages digital trading and e-market platforms.
The framework also simplifies licensing norms, reduces state-specific restrictions, and provides grievance redressal mechanisms. However, farmer leaders and the Punjab government have criticized the policy, arguing that it echoes the controversial farm laws introduced in 2020 and repealed in 2021 following protests.
Draft policy evokes farmer criticism
They contend that the policy draft attempts to reintroduce elements of the repealed laws, such as allowing farmers to sell outside the Agricultural Produce Market Committee (APMCs) and promoting privatization. The draft policy seems to have taken lessons from the backlash against the farm laws by emphasizing regulation, state involvement, and addressing farmers’ concerns. It incorporates safeguards for small farmers and proposes localized grievance redressal mechanisms.
However, the policy’s silence on Minimum Support Price (MSP) guarantees continues to be a major concern for farmers. Ensuring that private investments and digital solutions are accessible to marginal farmers is another critical issue. Jagmohan Singh, General Secretary of the Bharti Kisan Union (Dakaunda), remarked that both the 2020 farm laws and the 2024 draft policy share common objectives.
Other stakeholders emphasized that achieving the desired outcomes will require addressing historical concerns and inclusively delivering on its promises. The draft policy’s success will ultimately depend on its ability to address farmers’ apprehensions, particularly regarding price guarantees and equitable access to benefits. Agriculture, being a state subject, requires state-specific policies that consider local geographical conditions and challenges.
