Question.
Evaluate in brief the agriculture marketing reforms in India. Are they adequate?
( UPPSC, UP PCS Mains General Studies-III/GS-3 2019)
Answer.
After the success of the Green Revolution, India made significant progress in food security. However, the income of the farmer did not increase much, especially small and marginal farmers.
According to estimates, farmers have to suffer more damage after harvesting, and at the same time due to middleman's participation, they also face damage on the marketing side, as they do not get good prices from the market.
For example, in the month of June 2023, there was news from Haryana that middlemen were buying Capsicum [ Shimla chili ] from the farmer for 2 rupees a kg, but the rough price in the market was 40 rupees kg.
Such disadvantages are seen by farmers every year, almost everywhere, therefore, there is a great need to improve agricultural marketing.
The following are the main aims of Agriculture marketing reforms in India;
Alternative marketing channels:
There is a need to create a more efficient and alternative market channel like contract farming, direct marketing, and electronic trading.
Need to remove market intermediaries:
There is a need to reform to eliminate the commission fees charged by middlemen, allowing farmers to sell their produce directly to buyers.
Promote private investment in agriculture infrastructure:
The main aim of private investment is to reduce post-harvest losses by improving storage capacity. The reforms aim to promote private investment in agriculture infrastructure like cold storage, warehousing, and agro-processing industries.
Providing flexibility in selling agricultural produce:
The reforms aim to allow greater private participation in agriculture marketing for better prices and getting greater efficiency in the agriculture sector.
Enhancing farmers’ income:
The overall aim to market reform is to increase the farmers’ income.
The government has made the following initiative for agriculture reforms-
- Essential Commodities Act ( ECA), 1955.
- APMC ACT-Agricultural Produce Market Committee) Act
- Model Agriculture Produce and Livestock Marketing ( Promotion and Facilitation) Act 2017
- Electronic National Agriculture Market (eNAM), 2016
- Model Contract Farming Act, 2018
- Model Agriculture Land Leasing Act 2016
Essential Commodities Act (ECA) :
Essential Commodities Act (ECA), 1955 empowers the government to regulate production, supply, and distribution. Under this act, commodities can be declared “essential in order to make them available to consumers at fair prices. It protects the consumer's right against price hikes, however, it acts against the interest of the farmers.
APMC (Agricultural Produce Market Committee) Act:
APMC act empowers the state government to regulate and facilitate the functioning of the agricultural market, commonly known as Mandis. It aims to ensure fair and transparent transactions between farmers and buyers.
Electronic National Agriculture Market (eNAM) is an online platform launched by the Government of India in 2016. It aims to create a unified national market for agricultural commodities by connecting existing Agricultural Produce Market Committees ( Market mandi).
However, agriculture is a state subject, which hinders the uniform implementation of these reforms on the ground. Poor implementation and fragmented agricultural markets are major hurdles and challenges in the agriculture marketing reforms in India. Agricultural marketing reforms primarily focus on interstate trade, while intra-state markets remain largely regulated.
In conclusion, Agriculture marketing reforms in India have made significant changes in improving market access, enhancing competition, reducing intermediaries, and attracting private investment. However, challenges remain in the implementation of these policies and in protecting the interests of small and marginal farmers.
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