Punjab rejects centre’s draft National Policy Framework on agriculture marketing

The state government emphasized that agriculture is a state subject under Entry 28 of List II of the Seventh Schedule of the Constitution and urged the central government to allow states to formulate their policies based on their unique concerns and requirements. It further criticized the draft’s focus on promoting private agriculture markets and diluting the role of Agricultural Produce Market Committees (APMCs). Punjab, which has the highest density of APMC markets in the country, argued that its existing network of mandis is effectively serving farmers by providing a transparent and regulated system for selling produce.

The government asserted that introducing private markets would eventually render APMC markets irrelevant, leaving farmers at the mercy of private market operators. It cited that the average area served by an APMC market in Punjab is 115 square kilometers, significantly higher than other states, negating the need for new private markets.

Objections were also raised over the proposed capping of market fees at 2% for non-perishable and 1% for perishable commodities. The state argued that such a cap would hinder its ability to maintain mandi infrastructure and rural roads, both of which are funded through market fees and the Rural Development Fund. The draft policy’s provisions for capping commission charges, promoting contract farming, and declaring private silos as open market yards were also criticized. The state government expressed fears that these changes could pave the way for multinational corporations to exploit farmers, particularly by undermining the role of the Food Corporation of India (FCI) in grain procurement.

The letter noted that the draft policy’s encouragement of contract farming has been a major concern for farmers since the farm law agitation. Farmers fear that multinational corporations will replace FCI, leading to the eventual withdrawal of MSP-based procurement. This, the state warned, would be highly detrimental to the marketing of wheat and paddy, Punjab’s two major crops.

The state government also highlighted its extensive consultations with farmer unions, commission agents, millers, and other stakeholders before submitting its response. It underlined the unanimous opposition to the draft policy among stakeholders.

Interestingly, the Punjab government submitted its response on the same day that the Samyukta Kisan Morcha organized a “Kisan Mahapanchayat” in Moga, where farmer unions reiterated their demand for the policy’s rejection. The central government had initially set a deadline of December 15 for states to respond but extended it to January 10 at Punjab’s request for additional time.

The letter concluded with a firm rejection of the draft policy, urging the central government to refrain from imposing any such framework and instead respect the autonomy of states in framing agricultural policies.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}