Centre Proposes GST-Style Panel for Agricultural Marketing Reforms
The Ministry of Agriculture and Farmers’ Welfare has proposed creating an Empowered Committee of State Agricultural Marketing Ministers to streamline agricultural marketing reforms. Modeled on the GST Empowered Committee of State Finance Ministers, this initiative, led by Faiz Ahmed Kidwai, Additional Secretary (Marketing), seeks to unify the fragmented regulatory landscape and establish a seamless national agricultural market.
Key Proposals
Formation of Empowered Committee
The committee will be chaired by state agriculture ministers on a rotational basis and registered under the Societies Registration Act, 1860, through a non-statutory gazette notification. Additionally, a Permanent Secretariat will oversee operations and ensure regular meetings.
Reform Focus Areas
- Unified Licensing System: Introduce a single license and market fee applicable across all states.
- Private Markets & Direct Purchases: Allow private wholesale markets and enable direct procurement from farmers by processors, exporters, and retailers.
- Modern Infrastructure: Designate warehouses, cold storages, and silos as market yards, facilitating better storage and distribution.
- Price Insurance Mechanism: Implement insurance against price crashes, similar to the PM-Fasal Bima Yojana, to safeguard farmers’ incomes.
Legislative Recommendations
To support these reforms, amendments to the Agricultural Produce Market Committee (APMC) Acts are recommended to:
- Establish a unified market for agricultural produce.
- Create a framework for barrier-free trade and standardized market fees.
Challenges Addressed
Fragmented Markets
The current APMC Acts fragment markets within states, which significantly hinders trade efficiency and scalability.
Limited Reform Adoption
Although the Model APMC Act, 2003, introduced modernization recommendations, many states have yet to adopt these reforms, limiting progress toward a unified market.
Farmer-Centric Concerns
Furthermore, addressing price volatility and ensuring better returns for farmers’ produce remain critical to improving their financial stability and overall welfare.
Proposed Benefits
Seamless National Market
The reforms aim to enhance trade efficiency and competitiveness by creating a unified national agricultural market.
Ease of Doing Business
With unified systems, the proposal simplifies market processes, reduces barriers, and makes it easier for stakeholders to operate.
Farmer Welfare
Farmers stand to benefit from improved price realization and financial stability, particularly through mechanisms like price insurance against market volatility.
Conclusion
This GST-style committee represents a collaborative approach to bridge the gap between the Centre and states. By fostering consensus and prioritizing reforms, the initiative could unlock long-term benefits for farmers and the agricultural sector. Unlike past attempts, such as the repealed Farm Laws, this proposal emphasizes collaboration, ensuring reforms are widely accepted and effectively implemented.
