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Thread #AgriReforms
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New, organised & tech driven procurement/#marketing systems will only work as actual options for farmers if they manage to address the real constraints that #farmers face on ground, especially access to credit, inputs, storage, transport, & timely payments.
Farmers will not benefit from the newly announced reforms if they cannot overcome these constraints. While increasing competition for intermediaries is desirable, their elimination is a misguided/dangerous objective if one does not respect or replace the roles & risks they cover.
Even today the majority of farmers, especially small & marginal cultivators, sell their produce to largely unlicensed traders/intermediaries in Vill/local sites of exchange outside APMC. But, if farmers r bound by law to sell in APMC mandis, why r so many of them selling outside?
The new allocation towards #market infra must be fully utilised to build up an appropriately designed physical marketing ecosystem, especially in remote regions. This process should engage deeply with farmers/traders in each location to avoid misdirected/misplaced infra & assets.
Yes, APMC's have established themselves as dominant market sites, worked to restrict competition. This is where regulatory reform to remove conflicts of interests, enable the entry of new buyers, & facilitate the flow of trade both within and outside the mandi system is required
Regulatory reform must not degenerate into re-regulation that unduly favours Consolidation and channel control by erecting new barriers to entry for agro-commercial MSMEs. We must recognise & strengthen the diversity, dynamism, enterprise, & resilience of India’s #agri #markets.
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