Why Punjab’s arhtiyas are demanding for national-level extension of Punjab Agricultural Produce Markets Act

Punjab’s arhtiyas (intermediaries between farmers and buyers) have urged the state government to promote the Punjab Agricultural Produce Markets Act, 1961, as a national framework for agricultural marketing.

The Act functions under strict state oversight, necessitating that farmers primarily sell their products through government-regulated mandis. These markets are backed by fixed market fees (market development fund) that finance infrastructure and guarantee transparency as well as the advancement of market infrastructure via a committee. Although private markets are permitted, they function under stringent government regulations.

It highlights approaches to ensure equitable compensation for goods, establishing effective marketing systems to boost farmers’ earnings. It safeguards the interests of small and marginal farmers. The Act permits direct marketing via registered entities, allowing farmers to sell outside conventional mandis and reach various markets, including private purchasers. Private market yards operate with government authorization, and there are mechanisms for resolving disputes. The state’s agricultural marketing system is anchored by a robust network of mandis and traditional storage facilities, guaranteeing dependable assistance for marketing and storage requirements.

They are concerned that the new framework might undermine Punjab’s existing system. The draft NPFAM highlights the importance of deregulation and adaptability, permitting farmers to sell to private purchasers and on digital e-trading platforms, in addition to Agricultural Produce Market Committees (APMCs). It encourages collaboration between the public and private sectors, as well as private funding for market infrastructure like silos and cold storage facilities, by reducing regulatory burdens and streamlining licensing processes across states.

The policy suggests waiving market fees for private facilities, potentially jeopardizing the current mandi infrastructure. He mentioned that NPFAM supports major private enterprises and corporate entities, which could enable large firms to circumvent conventional markets, leading to monopolies and marginalizing farmers. Farmers contend that private silos primarily hold wheat, causing issues for other crops like paddy.

Farmers indicate that permitting private silos to function outside agricultural marketing regulations poses a monopoly risk, potentially resulting in corporate dominance and fewer choices.

“It will disturb the storage system since private silos will be encouraged, and current government storage sites may be leased to private entities, just like what occurred with various government departments before,” Cheema stated. A significant loss of revenue would also occur. Excluding private silos, cold storage, and personal yards from market fees could jeopardize the financial resources essential for sustaining Punjab’s robust mandi system, subsequently deteriorating the infrastructure. “Although the framework purports to promote innovation and competition, we worry it may result in corporate control, sidelining small farmers and hindering fair market access.” Arhtiyas assert that Punjab’s legislation effectively protects farmers’ interests and should be a blueprint for the nation. “They are concerned that the National Policy Framework might negatively impact farmers and favor corporate interests instead of public welfare,” Cheema stated.