Educating Stakeholders

Context: In the light of the recent protest against the agricultural marketing reform initiated by the government through ordinances, awareness campaigns must be organized to assuage the fears of various stakeholders.

Arguments favouring the agricultural marketing reforms

• Dismantled the Monopoly of Agricultural Produce Marketing Committees (APMCs) to give farmers the freedom to sell their produce to whoever and wherever they feel like.

• Setting up private agricultural markets has also been permitted to offer competition to the APMC.

• Free Market: Goods traded outside the mandi yards have also been exempt from market charges.
• Tacit Acceptance by majority of States: Uttar Pradesh, Madhya Pradesh, Gujarat, Odisha, and Tamil Nadu have already amended their APMC Acts to allow out-of-mandi transactions of farm commodities.
• Constitutional Validity: Constitution provides for Central intervention in agricultural marketing.

Challenges before the agricultural marketing reforms

• Assault on Federalism: Given the agriculture is a state subject.

• For, E.g. Punjab has been threatening to challenge the ordinances in the court.

• Resistance from the Stakeholders

• The traders (arhtiyas) operating within the mandis want these levies waived to have a level playing field with those who conduct their business outside the markets without paying any tax.
• The APMCs, in contrast, are seeking retention of these imposts because these are their primary source of funds to run the mandis.
• Farmers are not unanimous in welcoming the decision and due to disinformation are being floated by the anti-reforms lobby.

• For, E.g. Farm unions with Left leanings are projecting these reforms as a step towards ending the minimum support prices and procurement regime, exposing the farmers to exploitation by traders.

Way Forward

• Dispel the Apprehensions: Assure the farmers that neither the existing mandi infrastructure nor the support price-based procurement system is proposed to be abolished.