Three Years After Repealing Farm Reforms, Centre Proposes 'Unified Agriculture Market' For Better Farmer Incomes In Draft Policy

In a significant move aimed at reforming the agricultural marketing system, the Centre has unveiled a draft national policy framework. Nearly three years after the repeal of the farm laws, the policy outlines a roadmap to establish a unified national market for agricultural produce, with the goal of enhancing market efficiency and improving farmers’ incomes.

'Unified National Market' Proposal

The draft framework emphasises the need for a single licensing or registration system and a unified fee structure across states. These measures aim to reduce trade barriers and create a seamless agricultural market nationwide, allowing farmers to access better markets and competitive pricing for their produce.

Private Sector Involvement

The policy encourages the establishment of private wholesale markets and enables direct procurement from farm gates by processors, exporters, organised retailers, and bulk buyers. 

It also proposes recognising warehouses, silos, and cold storage as deemed markets to integrate these facilities into the supply chain. Further, the draft recommends a single-time levy of market fees and rationalisation of commission charges to lower transaction costs and enhance ease of doing business.

A Reform Committee

To ensure effective implementation, the framework proposes the formation of an Empowered Agricultural Marketing Reform Committee comprising state ministers.

This committee modelled after the GST Council, would facilitate consensus among states and oversee the adoption of reforms. The policy also suggests establishing a permanent secretariat to support the committee and potentially drafting a national law for agricultural marketing.

Modernisation of Indian Agriculture

The draft highlights the importance of leveraging cutting-edge technologies like blockchain, artificial intelligence, and machine learning to modernise supply chains. 

It proposes enhancing the existing e-NAM platform into a comprehensive Digital Marketing Portal to improve transparency, mitigate price uncertainties, and empower farmers with greater market access.

The overarching vision of the policy is to build a sustainable agricultural marketing ecosystem that ensures farmers of all categories have access to competitive markets.

By addressing inefficiencies and uncertainties, the framework seeks to secure long-term growth and resilience in India’s agricultural sector. Feedback from stakeholders has been sought to finalise the policy.