Punjab Govt Rejects Centre's Draft on Agricultural Marketing
According to a statement, the Punjab government has rejected the central government's Agriculture Mandi Policy blueprint, citing concerns that its provisions undermine the state's agricultural system, particularly in areas such as private mandis, minimum support price (MSP), and the rights of commission agents.
According to reports, the Punjab government has formally rejected the central government's Agriculture Mandi Policy draft, calling it an attempt to reintroduce aspects of the three controversial agricultural laws that were repealed in 2021.
Punjab expressed worries in a letter to the central government about how the proposed policy might affect the state's agricultural sector, specifically pointing out issues with private markets, minimum support price (MSP), and rural infrastructure.
Referring to the state's rights under Article 246 of the Indian Constitution, Punjab highlighted that agriculture falls under the jurisdiction of the state according to Entry 28 of the Seventh Schedule-2.
The letter called on the central government to re-evaluate the policy and allow states to handle these issues, highlighting the importance of addressing local agricultural challenges and needs.
The Punjab government's letter prominently raises concerns about the total omission of any reference to MSP in the new plan. MSP is considered a vital element for farmers in Punjab, and the ambiguity surrounding this matter has caused considerable worry.
The proposal also supports the establishment of private markets, which Punjab perceives as a risk to its long-standing market system. The state's strong resistance to this proposal highlights its commitment to preserving its conventional market framework.
Furthermore, the Punjab government has voiced significant opposition to the limitation on mandi fees, arguing that it could negatively impact the mandi system and rural infrastructure. According to them, this could diminish the essential revenue needed for the upkeep and operation of the state's mandi system.
The proposal also recommends promoting contract farming and recognizing private silos as open market yards, both of which have encountered resistance from Punjab. The letter emphasized the adverse consequences these provisions could have on commission agents, as their earnings might be reduced, potentially affecting their livelihood.
There were further concerns raised about the policy's focus on promoting direct farm purchases by exporters and bulk buyers, which could potentially bypass the conventional mandi system and commission agents.
Considering the possible effects on Punjab's agriculture, the state government has called for the central plan to be revoked and highlighted the importance of agricultural policies tailored to the state's unique requirements.