New Delhi: Nearly three years after repealing the farm laws in response to widespread protests, the Centre has unveiled a draft national policy framework for agricultural marketing. The policy proposes creating a “unified national market for agriculture produce” by streamlining licensing and registration systems and introducing a single fee structure across states.
Key recommendations of the draft include allowing the establishment of private wholesale markets, enabling direct wholesale purchases by processors, exporters, organized retailers, and bulk buyers at farm-gates, and recognizing warehouses, silos, and cold storages as deemed markets. It also advocates for the creation and operation of private e-trading platforms, a one-time market fee levy throughout the state, and the rationalization of market fees and commission charges to improve the agricultural market landscape.
The draft was released by the Ministry of Agriculture last month, inviting feedback from stakeholders for further consultations. It was developed by a committee chaired by Faiz Ahmed Kidwai, Additional Secretary (Marketing) in the Ministry of Agriculture.
While some states and Union Territories have adopted similar measures in a limited or inconsistent manner, the draft calls for a unified approach across the country. It proposes the formation of an “Empowered Agricultural Marketing Reform Committee” of state ministers, modeled after the GST council, to encourage states to adopt the reform provisions.
The draft highlights that such a committee could help build consensus among states for the establishment of a unified national market. It also suggests creating a “permanent secretariat” for the committee, similar to the GST body, to further streamline agricultural marketing reforms.
One of the core objectives of the policy is to create a “vibrant marketing ecosystem” where farmers can access markets of their choice and secure the best prices for their produce. Additional suggestions include recognizing trading licenses from other states (reciprocity of licenses), deregulating perishables outside market yards, exempting market fees on direct sales by farmers, and waiving market fees for produce brought from other states for processing.
The draft also emphasizes the importance of developing digital public infrastructure using blockchain, AI, and machine learning to strengthen supply chain processes, from farms to storage. It highlights the need for a mechanism that mitigates market uncertainties and stabilizes prices.
As part of its digital strategy, the proposal suggests an enhanced version of the existing e-NAM (National Agriculture Market) platform, called the Digital Marketing Portal. The draft advocates for the creation of end-to-end Value Chain Centric Infrastructure (VCCI), which will integrate supply chains and reduce transaction costs, ensuring more efficient and transparent marketing delivery.
In total, the 39-page draft policy aims to modernize agricultural markets, facilitate smoother trade, and ultimately improve outcomes for farmers.
