Draft National Policy Framework on Agricultural Marketing (NPFAM)
Context:
Recently, the Union Government had released The National Policy Framework on Agricultural Marketing (NPFAM) for public comments. Meanwhile, the Samyukt Kisan Morcha (SKM), an umbrella organisation of farmers, has termed the draft more dangerous than the three farm laws repealed in 2021.
Relevance:
GS-02 (Government policies and interventions)
Draft National Policy Framework on Agricultural Marketing:
- The framework aims to create a vibrant marketing ecosystem where farmers can access multiple markets and achieve the best prices.
- It also focuses on improving market efficiency and competition through transparency, digital technology, and value chain-based marketing.
Key Highlights of the Draft Policy:
- Encouragement for Private Markets:
- Promote private wholesale agricultural markets, building on the existing 125 private markets in five states.
- Introduce at least one private market per revenue division.
- Farm-Gate Accessibility:
- Enable direct purchases by processors, exporters, and retailers at farm gates.
- Declare warehouses and cold storages as sub-market yards to enhance accessibility.
- Unified National Market:
- Establish a unified market fee and trading license system.
- Integrate APMCs, private markets, and e-NAM for seamless trade across the country.
- Grameen Haat Modernisation:
- Develop 300 Grameen Haats annually into GrAMs, focusing on hilly and North-Eastern regions.
- APMC Reforms:
- Dedicate spaces for organic and natural farming produce.
- Modernise APMCs through Public-Private Partnerships (PPPs) and professional management.
- Technological Modernisation:
- Leverage advanced technologies like blockchain, AI, and machine learning for supply chain improvement.
- Enhance the e-NAM platform into a comprehensive digital marketing portal.
- Market/Price Risk Mitigation:
- Encourage contract farming to reduce market risks.
- Link FPOs to markets and introduce a price insurance scheme similar to PM-FBY.
- Special Focus on North-Eastern and Hilly Regions:
- Develop tailored market ecosystems for regional produce like spices, fruits, and medicinal plants.
- Emphasise branding, packaging, and organic certification for domestic and international markets.
- Capacity Building and Market Intelligence:
- Conduct farmer awareness programs and strategic training for marketing personnel.
- Develop a unified national market portal for real-time data on prices, arrivals, and market trends.
SKM’s Concerns:
- Erosion of Federal Rights: The policy is alleged to undermine the federal structure by reducing the powers of state governments in agricultural marketing.
- No Support for Farmers: It lacks provisions for ensuring Minimum Support Prices (MSP) for crops or minimum wages for agricultural workers.
- Corporate Dominance:
- SKM claims the draft policy prioritises corporate interests over the welfare of small producers, farmers, and agricultural workers.
- Proposes a shift to a unified national market, favouring a value chain-centric infrastructure over local and traditional systems.
- Technological Integration:
- Advocates the use of advanced technologies like digital public infrastructure, blockchain, and artificial intelligence to integrate private and public sectors.
- SKM fears this could lead to deregulation, enabling the private sector to dominate production, processing, and marketing.
- Fundamental Restructuring: Proposes a complete overhaul of the current agricultural marketing system, which the SKM views as detrimental to farmers’ interests.
Conclusion:
This issue highlights the contentious nature of agricultural reforms in India, touching upon federalism, farmers’ welfare, and corporate influence. A balanced approach is required in addressing critical issues like this.
