Draft Policy on Agricultural Markets Sparks Fears of Corporate Control
India’s draft National Policy Framework on Agricultural Marketing has ignited a fresh wave of concerns among farmer groups, particularly over its potential to push the privatisation of wholesale markets, which are crucial to the livelihoods of millions of farmers. The policy, which was released on November 25, 2024, is seen by many as a possible revival of the controversial farm laws that led to nationwide protests from 2020-21.
For Samyukt Kisan Morcha, an umbrella organisation comprising 32 farmer unions, the new policy is viewed as a “backdoor resurrection” of the farm laws, as it could transfer control of the agricultural supply chain to a select few corporates. According to the group, the draft policy undermines the basic tenets of agricultural marketing, which is central to the economic stability of farmers.
The policy focuses on expanding the role of private players in India’s agricultural markets. Presently, India has over 7,000 Agricultural Produce Marketing Committee (APMC) regulated markets, along with around 125 private wholesale markets. These private markets are mainly in states like Bihar and Kerala, where APMC laws do not exist. Despite limited success, the policy proposes extending private wholesale markets to every revenue division in the country, with plans to scale up further to cover every district.
At the same time, the draft policy encourages public-private partnerships (PPP) to improve infrastructure at APMC markets. However, experts are sceptical about this model, as they fear it may lead to the gradual privatisation of these markets. “Why open up agricultural markets to private wholesale players and still push for PPPs in APMCs? This could effectively mean handing over the daily operations of mandis to private entities,” says Sukhpal Singh, professor at the Indian Institute of Management, Ahmedabad.
In addition to the focus on private markets, the policy is also advocating for more private involvement in the marketing of horticultural produce, which is currently allowed in 21 states. Despite this, farmers continue to face poor returns for perishable goods, which form a significant portion of high-value crops in India. According to Singh, leaving such markets entirely to private forces will likely fail to serve the best interests of farmers, particularly when there is no clear grievance redressal mechanism for those selling through private markets.
Farmers have been vocal about their concerns since the 2020-21 protests, and this draft policy only adds to the frustration, as it does not adequately address their demand for a fair and transparent mechanism to resolve disputes. Without such safeguards, the transition to a more corporate-driven market structure could deepen the inequalities in agricultural trading.
As the policy is open for public comments, the debate continues over whether it will serve to enhance the welfare of farmers or pave the way for a greater corporate dominance in the agriculture sector. With the stakes high, the outcome of this policy could significantly shape the future of India’s agricultural market landscape.
