RESTORING STATES' STATUS

The new draft policy on agriculture marketing recognises the primacy of states and seeks to build consensus

- SANJEEB MUKHERJEE

After backing down in the face of farmers' protests over the now-repealed farm laws, the Centre's new draft policy framework on agriculture marketing looks to put the onus of freeing agriculture markets back on to states. It has also called for a more collaborative approach between the Centre and states in reforming farm markets.

The draft, released a few days back for public comments, talks of setting up a GST-like body of state ministers for building consensus on farm marketing, including a unified national market for agricultural produce with single licensing and single fee, an issue that has festered for years. This time, the Central government takes cognisance of the pivotal role of states, experts say.

Acknowledging early on that the agricultural market is a state subject, the draft policy calls upon the states to frame and notify their own policy framework for it on the lines of the national policy.

"This draft is better than the imposed farm laws earlier," S Mahendra Dev, former chairman of Commission for Agriculture Costs and Prices (CACP), tells Business Standard. "It doesn't give a diktat to states. It looks more persuasive. It talks about APMCs (Agricultural Produce Marketing Committees), development of private markets, infrastructure, value chains, etc. Political economy plays an important role at the state level. States will do agriculture marketing reforms based on political economy."

Right of states

Before 2020, when the Centre passed the three controversial farm laws, agriculture marketing was states' domain. A major criticism of the farm laws was that they infringed states' right to frame legislation on agriculture marketing.