World Bank agenda of repealed farm laws return with ’National Policy Framework on Agriculture Marketing’ (NPFAM) | Rajan Kshirsagar

The Union Government has brought forward the “National Policy Framework on Agriculture Marketing” (NPFAM) [1] trough which trying to bring back agenda & content of Three Black farm laws. The draft calls for B-Ready agriculture which is a dictated by World Bank & WTO.

India has witnessed the historic farmers movement against the three black farm laws viz 1. Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; 2. Farmers Empowerment and Protection) Agreement on Price Assurance and Farm Services Act 2020; and 3. Essential Commodities (Amendment) Act, 2020. The farmers in India conducted vibrant struggle at the borders of Delhi for 383 days with sacrificing 740 lives which was supported by farmers & workers across the country. Sanyukt Kisan Morcha the vibrant platform of Farmer organisations has been formed during the struggle.

This black farm-laws is a world bank dictated agenda of complete corporatisation of Agriculture in India. The Prime Minister Narendra Modi had to repeal these three farm-laws by declaration on 19th November 2021 which was confirmed in the Parliament on 29th November 2021. While repealing these law the Union Government assured agitating farmers that act for legal guarantee of MSP will be passed in six months.Since after three years the Union government neither fulfilled the assurance nor passed act for legal Guarantee of MSP. Farmers continued to demand for legal guarantee of MSP@C2+50% & act for freedom for indebtedness.

After Loksabha 2024 election despite losing single handed majority BJP retained power with allies. It continued its pro corporate policies which ruined farmers due to falling prices of agricultural commodities. The Union Government has brought forward the “National Policy Framework on Agriculture Marketing” (NPFAM) trough which trying to bring back agenda & content of repealed Three Black farm laws. The draft calls for B-Ready agriculture which is a dictated by World Bank & WTO.

The Union Ministry of Agriculture & Farmers’s Welfare released a Draft “National Policy Framework on Agriculture Marketing” (NPFAM) on 25th November, 2024, inviting comments/suggestions from all those interested.

Generally to bring out major policy reforms in any sector/issue there is a practice of study of the status through experts committee or parliamentary committee. No Committee committee of either experts or parliament is formed about status & issues Agricultural Marketing. None of the study has been conducted about issues of stakeholders & farmers. None of the committee has endorsed any such policy framework. This clear violation of regular parliamentary practices. The draft NPFAM is not supported any of such recommendation. The only source is dictates of WTO & World Bank. The Narendra Modi government has initiated Business Reforms Action Plan (BRAP) 2024 based on B-Ready 24 policy advocates from World Bank which is declared by Government Press release on 30 September 2024

The NPFAM Draft in its first sentence starts with a claim: “Country’s agriculture sector has shown its best performance in terms of growth in output and sectoral income over the last few years. From 2016-17 to 2022-23, agriculture witnessed an annual growth of 5% which was never achieved before for seven consecutive years consistently in independent India.

This claim does not corroborates with the ground data. The farmers are under distress situation. Number of The farmer suicides in India are not only alarming but showing the worst crisis in Agriculture sector. Unemployment in rural India is now triggering complex socio-economic issues. But those who are in ivory tower can not see it & can not understand it.

This draft is as stated it is policy framework put forward by ministry of agriculture that means along with agriculture many other ministry & departments along with state departments will also play role in implementing the policy framework as a part of Business Reforms Action Plan (BRAP) 2024 . This is a policy framework about Marketing Policy and it has no concern neither about MSP nor about farmers rights.

The Mission of NPFAM : Though it is agreed that agriculture marketing is a State subject under Entry 28 of List-II (State List) of the VII Schedule under article 246 of the Constitution, The Mission NPFAM forces state governments to notify state policy framework. This is assault on federal principles of the constitution. Also de-recognition of needs of farmers in the state. The Mission talks about the State/UT-wise marketing and auxiliary infrastructure gap. But it choses path of bridging gap through public-private partnership & not through enhancing support from Union Government. Which is a desire to give up marketing regulation in the hands of corporates. The mission is to promote multiple channels for marketing is to be promoted with involvement of public and private sector both for the sake of efficiency & competition. Which is clearly a deregulation of Market for the interests Corporate Agro Bussiness & Global Giant. Which implies mission to dismantle Government Procurement & dismantling of APMCs

The Mission of NPFAM is to create “B-READY” atmosphere for agritarde including licensing /registration system and entire trade processes/ operations.

This a term B-Ready is regularly advocated by world bank for policy reforms. The WB in its B-Ready 24 (Business Ready 24) [2]2 document clearly state that, “It is a key instrument of the World Bank Group’s new strategy to facilitate private investment,”. It is also mentioned that “The private sector must become more dynamic and resilient to meet formidable development challenges.” With this World Bank policy dictates The initiative has been taken By the Narendra Modi led BJP government.

This is putting forward the agenda of private Companies & Corporate profits first. This is to crush rights of farmers to increase profiteering of Corporates entering in AgroBussiness. This also endangering of National Interest & even sovereignty of the country.

The world bank has advocated Reform advocacy and Policy guidance to Government of India which is actually policy dictated and not guidance.

The draft NPFAM also talks about Market Information, market intelligence, Market uncertainties. But not talked about MSP & rights of Farmers. The mission is to through farmers before the hounds of Corporate market forces. The hidden mission is to end the very concept of Minimum Support Price.

This also instigated that rollback of public distribution system.

Through NPFAM & BRAP 2024 The Narendra Modi Government will initiate allround attack on legal & constitutional rights of farmers and workers in India. It will lead to dismantling of many Central & State government laws & legal framework. This may trigger to dismantling of co-operative sector.

The draft NPFAM states about little information about agro trade in India. But not mentions about the rights of farmers/stakeholders, MSP & agro trade, co-operatives in marketing, what role played by private businesses about MSP ?, no analysis is made, neither role government is discussed. Some facts to be noted that Many states have strong provisions in APMC acts such as no agro trade can be conducted below declared MSP. APMC can intervene decide rules about gradation of agricultural goods but none of the trader can refuse to purchase agricultural goods of any grade. Elecronic & correct weighing is compulsory in APMC Jurisdiction. APMC has right decide handling charges & methods of trade. APMC has powers to penalize traders favouring farmers. If any dispute arises between farmer & trader the APMC has the final word. This provisions play an important role. Corporates wants to destroy these provisions. What role private Mandies has played ? It is observed that by introducing Co-operation ministry in Union Government the role of NAFED is completely dismantled. The Union Government promoted NAFED procurement centres deliberately outside the provisions of APMC at. Experience of farmers show that the above provisions are grossly violated in Private wholesale markets, Unregulated wholesale markets and even in private procurement centres financed by NABARD resulting in exploitation of farmers.

The draft NPFAM much enthusiastically talks about Electronic Trading Platforms/ Markets but does not give any data or analysis. Many state government & APMCs has rejected the provision of eNAM because of many irregularities & weak monitoring. The Future & Options markets are primarily designed for benefits of investors. The fruits of this Future & Options markets are not for farmers & producers. This finance-driven unstable system is used to kill the rights of farmers. Favouring few corporates & utilising whole system for some big Corporate houses like Adani is the practice of SEBI in India. How can someone keep faith that future & derivative market will benefit to farmers. Actually it is meant for investors & corporate profits and not the farmers. Electronic Trading Platforms are not for legal gurantee of MSP but it helps the AgroBusiness Corporations, Exporters, Bulk Buyers Hoarders, & Multinationals. Those will cheap buying on one side and through hoarding & black marketing at higher prices.

The draft NPFAM is putting forward the policy interventions that are actually old wine in the new bottle ! Compelling states to start with at least one private market in every district. Compels to promote more number of physical as well as virtual markets in private sector. Department of Economic affairs and SEBI to create Commodity Exchanges for regular policy on futures trade. Create more Privae markets CACMP/FPO premises, in addition to APMC markets, with eNAM portal. The Government did not want to invest public infrastructure for agri marketing. No assistance to states for Expansion of Marketing Infrastructure is mentioned rather trying to escape from the responsibilities of Development.

The draft NPFAM Government has shamelessly denied the responsibility of developing public infrastructure for Agricultural Marketing. It says that Earliar grant in aid is converted in subsidies for different schemes since AtalBihari led BJP Government 2000. Draft says “Now, in the changed marketing dynamics, there is a need for creation of end-to-end Value Chain Centric Infrastructure (VCCI) and Digital Infrastructure.” implies that should be kept for Private Corporate Business. This clearly explains withdrawal of grant & subsidies of Union Government for farmers & cooperatives and handing over the Public assets to Private corporates. The concept behind Value Chain Centric Infrastructure (VCCI) is nothing but complete corporate control. Which further states that even APMC’s could also handed over to Private businesses under Public Private Partnership(PPP) The Government is committing Financial infrastructure and assistance to Value chain partners on a robust scale. Value Chain partners could be availed Working capital & Pledge loan. Which is The business of making butter on water for Corporate !

Now the agrobusiness class has become class enimies of toiling masses workers and farmers.

The draft NPFAM has insisted on Digital infrastructure. The Union Government has already initiated. On 4th Dec 24 it is Declared that The Government has approved the Digital Agriculture Mission with an outlay of Rs. 2817 Crore. The Mission seeks to create digital agriculture ecosystem in the country & consists of three foundational registries or databases in the agriculture sector, i.e., the Farmers’ Registry, Geo-referenced village maps and the Crop Sown Registry, all created and maintained by the State Governments/ Union Territories. Though the government has stated. Data will be protected with privacy aspects as per Digital Personal Data Protection (DPDP) Act, 2023. Buts as we know data leaks of Aadhar it can not be guaranteed. The government himself use this in the corporate interest. The use of public data for yield projection, market intelligence, and for n number of reasons. This digital infrastructure which is to be buit in PPP mode will be easily manipulated by Corporate houses. Also there are examples in Bihar, Maharashtra this registry is used to evict cultivators.

The draft NPFAM is targeting APMCs as enemy rather than critical role of it. As agricultural marketing is a state subject in the constitution state governments has passed the laws of APMC. The Government wants professionalism In APMC what this means & why ? APMC is a regulatory body to protect interests of the farmers. Actually this role is to be strengthened if the act for legal Guarantee is passed. But the objective of BJP led Union Government is serve the Corporate greed of profit. For this very purpose Draft NPFAM has proposed complete dismantling APMC by pressurising the State Governments. Equipping APMC markets with specific infrastructure and services in PPP mode, is nothing but the handing over Assets and Role of APMC to corporates. By Reform initiatives in agricultural marketing laws and policies Union government is trying to impose corporate hegemony based model Act “ the Agricultural Produce and Livestock Marketing ( Promotion & Facilitation) Act, 2017. Along with Permitting wholesale direct purchase by processors, exporters, organised retailers, bulk buyers from farm-gate (Direct marketing). The draft criticizes State government for slow progress in this regard. The Government is insisting on corporate hegemonic concerns such as Allowing establishment and operation of private e-trading platform, Single time levy of market fees across the state, Single unified trading licence valid across the state, Rationalization of market fee, Recognition of trading licenses of other state (reciprocity of trading licence) Exemption of market fee on direct sale by farmers / FPOs at processing units Exemption of market fee on produce brought from other state for processing. . These Concerns shown by Union Government is an encroachment on the powers of State Governments.

The draft NPFAM De-regulation of perishables outside the market yard is insisted by Government. Now in India the fruit & vegetable production has increased to large scale. India is the world’s second-largest producer of fruits and vegetables producing 355.48 million tonnes of the value around 30 to 33% value of gross agricultural produce. To protect interest of farmers from Giant food processing corporates needs to strengthened APMC act. But The Narendra Modi Government is destroying the basic need of the hour. It is to be observed that Kashmir produces 70% of the apple in India. Apple production is the strength of rural economy of Kashmir. Global Corporates in fruit business are trying either control or to destroy the competition with Kashmiri Apple. This policy will serve such interests of Global Trade Giants and destroy livelihood of farmers in India.

The draft NPFAM is intended to create Unified National Market for agricultural produce. This bulldozing diversity of Indian Agricultural produce & practices. The Kerala has created important framework to safeguard the interests of farmers such as rubber board, coconut board Many states conducts state level procurement process with additional incentive over MSP. This all rights of farmers and States will be bulldozed by this Unified National Market for agriculture produce. The basic intention of Modi Government to snatch the rights of the State Governments & farmers.

To create a B-Ready atmosphere for corporate houses Government wants to dismantle very concept of MSP & legal restriction on Agricultural marketing. Non-existence or non-functioning of government procurement system at MSP rates is the basic requirement for any private wholesale market to survive. This clearly shows that the interests of farmers has been surrendered to corporate business. The Following states conduct the state level procurement of agricultural produce : Punjab, Haryana, Uttar Pradesh (Wheat Procurement); Chhattisgarh, Telangana, Andhra Pradesh (paddy Procurement) Gujarat, Madhya Pradesh (Procurement of coarse grains like bajra) Many State Governments conduct procurement of Agriculture produce under Tribal sub-plan as a support system. Along with Union Government has intended to Completely dismantle the Food Corporation of India the biggest public sector purchaser of India & which is a largest supply chain of The Public Distribution system

Following Crops procured by the government Cereals: Paddy, wheat, barley, jowar, bajra, maize, and ragi Pulses: Gram, arhar/tur, moong, urad, and lentil Oilseeds: Groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed, and nigerseed Raw cotton: Procured by the Cotton Corporation of India (CCI) Raw jute: Procured by the Jute Corporation of India (JCI) Copra: Procured by NAFED De-husked coconut: Procured by NAFED Sugarcane: Procured at a fair and remunerative price Virginia flu cured (VFC) tobacco: Procured by the government

Thus The complete dis-mantaling of Procurement process will ruin the prospects of farmers & workers in India. The livelihood of Indian farmers will be at the mercy of Giant Corporate & Blind market forces. This will creating a neocolonial model of rule.

The draft NPFAM has proposed a new body parallel to GST council To rule this new era. Empowered Agricultural Marketing Reform Committee of State Agricultural Marketing Ministers . This supra body will keep all issues out side the democratic processes paricularly Assemblies of the states and even restriction on Parliamentary process.

The draft NPFAM proposes ease of doing business & not farming! For this purpose Digital Issuance of licence/ registration, Linking of issuing of licence or undertaking registration with PSDA , Rationalisation of license/ registration fees and security, Rationalisation of market fees and commission charges, indexing table considering aforesaid parameters to promote “ease of doing agri-trade”. There no concern of farmers at all ! The Union Government wants to encroach & bulldoze the on the rights of state government on the policy dictates of World Bank ! This may rupture the federal character of the Constitution. Already Union Government’s proposals of One Nation One election ! One Nation One Tax ! & one Nation One Market is the agenda which is leading to an authoritarian regime.

It is also proposed in The draft NPFAM that those state governments who are implementing NPFAM will be indexed based on Implementation ratings. Agriculture Ministers of top three states will be honoured through the appreciation letter for / excellence certificate about implementation NPFAM ! What a greate idea of celebration ! Those who are ready to surrender the soul of farmers will be honoured by a certificate & Corporates will take away all the profits!!

The draft NPFAM proposed Market / Price–Risk Mitigating Measures with Policy Intervention This itself gives answer to farmers doubt about getting prices of agricultural commodities ! The whole system is created in the interest of Corporate Greed and farmers rights are crushed. System is driven by profit hunger of the volatile & unstable finance capital. And conflict of interest is bound to happen. Farmers will never get rightful prices to the agricultural produce. But in this situation also Union Government wants to protect corporate interests. For this Government is advocating a compulsory retirement of farmers from farming & snatching of land from the farmers. Market linkage through FPOs means FPO will cater the contract farming and serves as agents of corporate. Already Union Government has adopted operational guideline for establishing FPO on large scale in 2020

The draft NPFAM has proposed implementation of Model Contract Farming and Services (Promotion & Facilitation) Act, 2018 by the state governments. Once the act passed in State Assemblies State Government will form a Board for regulation of contract farming. FPO could cater the contract farming. There is no mention of minimum support price in the regulation of Contract.

The dispute settlement mechanism is at the level of Sub-divisional Magistrate & appeal up to District Magistrate. None of the disputes could be raised in the civil court. This whole process creates complete corporate control of land and agricultural produce. This will be an assault on farmers. The role of FPO is as junkers path. The ruling corporate class can find agents operating through FPO. Many FPO will be only cover to corporate wrong doings. Such biased law can not be Justified. Ruling BJP Governments in States may pass this model contract farming acts with out consideration farmers objections. Corporate bodies may create monopolies & control in different agriculture produce trading.

The proposals of contract farming are already of old kinds made in black farm laws. The Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm Service Ordinance, 2020. In this proposal it is not through Central act but through state legal frame work.

The draft NPFAM has proposed Price Insurance Scheme on the lines of PM-Fasal Bima Yojana (PMFBY). Farmers in the country has experienced the fate of PM-Fasal Bima Yojana (PMFBY) Which is ploy to loot public money by Corporate Insurance Companies! Complete Failed to give relief to farmers affected in natural disaster. Many state including BJP/NDA ruled Gujarat Bihar are not implementing it. It is an outsourcing of disaster management with anti-farmer rules.

The Price Insurance scheme is again gives guarantee about that System Based on NPFAM will not be able to deliver justice to the farmer. It will create shocks & turmoil to the farmers who produce agricultural produce. Price Insurance scheme will be another model of cheating to farmers. The government wants give subsidy to finance sector & GST tax burden to the farmers. Why this Price Insurance Scheme is suggested ? Why Government do not want to give simple legal guarantee of Minimum Support Price@C2+50% based on Swaminathan Recommendation. This question matters !

Whatever laudatory objectives the government claimed, taken together, actually the Acts aimed at:

• Facilitating free and unlimited inroads to corporate world to exploit the agriculture sector and agri-produce trade;
• Tinkering with the existing assured purchase (in whatever limited way it exists today) of food grains and other agriculture-produce at MSP, with the ultimate aim of putting an end to government procurement at MSP;
• Tinkering with the state APMCs (Agriculture Produce Marketing Committees) with the ultimate intention of disbanding Food Corporation of India and other government/semi-government agencies presently engaged in purchase at MSP rates;
• Reintroducing and facilitating “hoarding” of foodgrains and other essential commodities, and promoting and facilitating unrestricted “profiteering” by big traders;
• Encouraging and facilitating contract farming, in the process of which the small and marginal farmers were likely to be lured into a trap, ultimately leading to permanent dispossession of their meagre land holdings;
• Handing over the agriculture produce market to the private big traders and companies, a process which was certain to lead to formation of cartels and big monopolies handling the complete agriculture-produce trade.

This Draft National Policy Framework on Agricultural Marketing, which the government has now brought, is nothing but an exercise in proceeding further to fulfil those very aims. It is a backdoor attempt to introduce the repealed farm laws. 1. The Essential Commodities (Amendment) Ordinance, 2020. 2. The Farmers’ Produce Trade and commerce (Promotion and Facilitation) Ordinance, 2020. 3. The Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm Service Ordinance, 2020.

The farmers throughout the country had protested against those three black laws despite the Corona epidemic. When the government refused to take note of the protests, the farmers’ organizations formed a united front of farmers – the Samyukt Kisan Morcha. Which continued the historic agitation of 383 days at the borders of Delhi sacrificing 740 lives and facing immense repression succeeded in victory by repeal of 3 Black farm laws.

The Modi Government in his NDA3 Government again made betrayal of promises given to the agitating farmers. The Modi Government neither enacted legal guarantee nor implemented any support system for farming. The NPFAM & BRAP 2024 Together constitute an all round assault on farmers & workers of the country.

These policies are a bonanza for the corporate & global finance capitalism. These policies will ruin Indian agriculture & destroy livelihood of the farmers and workers. The World Bank dictated policies of Narendra Modi Government are not only devastating farmers and workers of the country but also destabilize constitutional federalism. Which may further lead to complex socioeconomic issues. This time Government has taken rout passing through states. The BJP ruled states may take aggressive stance to implement NPFAM. Some of the states are more egar to implement it.

The All India Kisan Sabha strongly protests against the NPFAM & BRAP 2024 & demands to repeal it. AIKS shall continue its battle against these policies of devastation. Sanyukt Kisan Morcha SKM of which AIKS is important constituent has joined the battlefield and declared agitation. The Participataion in the Kisan Mahapanchayat in Tohana (Hariyana) & Moga (Punjab) has shown enthusiasm. The SKM general body has decided to launch nationwide agitation starting with State level Pakka Morcha, in every states.

SKM has also appealed all farmers organizations to fight unitedly against NPFAM & BRAP 2024. All sections of farmers and farming community, small and medium farmers, share croppers and tenent farmers, cattle feeders, milk producers, tribals, rural labors, should join hands to fightback the assault on Agriculture & Federal Character of the Country. The farmers and workers who has fought for the freedom struggle against British Colonialism will not Neo colonialism imposed by World bank —WTO dictated Policies.

(Author: Rajan Ramchandra Kshirsagar, President All India Kisan Sabha
Contact: kshirsagar.rajan[at]gmail.com)