Punjab govt rejects Centre's agricultural marketing policy blueprint

The Punjab government has rejected the central government's Agriculture Mandi Policy blueprint, citing concerns over its provisions that undermine the state's agricultural system, including issues related to private mandis, minimum support price (MSP), and commission agent rights, a statement said.

A statement said that the Punjab government has formally rejected the central government's Agriculture Mandi Policy blueprint, calling it an attempt to reintroduce provisions from the three controversial agricultural laws that were repealed in 2021. In a letter sent to the central government, Punjab raised concerns about the proposed policy's impact on the state's agricultural landscape, particularly highlighting its provisions related to private mandis, minimum support price (MSP), and rural infrastructure.

Citing the rights of the state under Article 246 of the Indian Constitution, Punjab emphasised that agriculture is a state subject, as per Entry 28 of the Seventh Schedule-2. The letter urged the central government to reconsider the policy and leave such matters to the state, emphasising the need to address local agricultural challenges and requirements.

A statement highlighting the major objections raised by the Punjab government in the letter pertains to the complete absence of any mention of MSP in the new blueprint. MSP is seen as a critical factor for Punjab's farmers, and the lack of clarity on this issue has raised significant concerns. The blueprint also encourages the establishment of private mandis, which Punjab views as undermining its well-established mandi system. The state's strong objections to this move reflect its commitment to preserving its traditional mandi infrastructure.

Additionally, the Punjab government has expressed strong disapproval over the imposition of a cap on mandi fees, which they argue could harm the network of mandis and rural infrastructure. This, they say, could reduce the revenue crucial for the maintenance and functioning of the state's mandi system.

The blueprint also proposes the promotion of contract farming and the designation of private silos as open market yards, both of which have been met with resistance from Punjab. The letter emphasised the adverse impact these provisions could have on commission agents, whose commissions might be reduced, potentially affecting their livelihood.

Further concerns were raised about the policy's focus on promoting direct purchase from farms by exporters and bulk buyers, which could bypass the established mandi system and commission agents.

Given the impact these provisions could have on Punjab's agricultural system, the state government has demanded the cancellation of the central blueprint and urged the central government to leave agricultural policies to be shaped by the state's specific needs.