Punjab Arhtiyas Advocate for Agricultural Policy Reform

January 6, 2025

Punjab’s arhtiyas, the intermediaries between farmers and buyers, are currently urging the state government to adopt the Punjab Agricultural Produce Markets Act, 1961, as a national model. This Act has been very important in shaping Punjab’s agricultural landscape for over six decades. The arhtiyas’ advocacy stems from concerns over the proposed National Policy Framework for Agricultural Marketing (NPFAM), which they believe could undermine the established system.

Key Features of the Punjab Agricultural Produce Markets Act

The Punjab Agricultural Produce Markets Act, 1961, operates under stringent state regulation. Farmers are mandated to sell their produce through government-controlled mandis. These mandis are financed by fixed market fees that contribute to infrastructure development. The Act ensures transparency and establishes a committee to oversee market operations. While private markets can exist, they must adhere to strict government licensing requirements. The legislation prioritises fair remuneration for farmers, enhancing their income through efficient marketing systems. It also safeguards the interests of small and marginal farmers by allowing direct marketing through registered entities.

Concerns Over NPFAM

Arhtiyas are particularly concerned about the implications of the NPFAM. The draft policy promotes deregulation and flexibility, allowing farmers to sell directly to private buyers and utilise digital trading platforms. This shift could weaken the traditional mandi system, which has been a mainstay of Punjab’s agricultural economy. The NPFAM encourages public-private partnerships and private investment in market infrastructure, potentially favouring large corporations over local farmers.

Opposition to Private Silo Storage

Farmers and arhtiyas oppose the introduction of private silo storage in Punjab. They argue that such facilities primarily store wheat, neglecting other essential crops like paddy. The existing government storage facilities are deemed adequate for managing primary crops. There is concern that allowing private silos to operate outside of established agricultural marketing laws could lead to monopolistic practices, reducing options for farmers.

Revenue Loss and Market Access Issues

The proposed exemptions from market fees for private silos and cold storage facilities could result in a substantial loss of revenue. This revenue is crucial for maintaining Punjab’s robust mandi system. The arhtiyas fear that while the NPFAM claims to encourage innovation, it may instead facilitate corporate dominance, marginalising small farmers. They believe that equitable access to markets would be jeopardised, further entrenching inequalities.

The Punjab Agricultural Produce Markets Act was enacted in 1961.
Arhtiyas facilitate transactions between farmers and buyers in Punjab.
NPFAM stands for National Policy Framework for Agricultural Marketing.
The Act allows direct marketing through registered entities.
Ravinder Singh Cheema is the president of the Punjab Arhtiyas Association.

Future Implications for Agricultural Marketing

The ongoing debate surrounding these agricultural policies marks the complexities of balancing traditional practices with modern market demands. The arhtiyas advocate for the Punjab Act as a protective measure for farmers, ensuring their interests are prioritised in an evolving agricultural landscape.

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