Punjab’s arhtiyas (commission agents) have joined the ranks of the state farmers in vehemently rejecting the Centre’s controversial draft policy on agricultural marketing. In a move that could redefine the state’s agrarian future, Punjab’s commission agents are not only voicing their discontent but also calling on the State Government to initiate action — demanding a special session of the Punjab Vidhan Sabha to formally reject the proposal. The powerful stand against the policy, which is seen as a covert attempt to revive the now-repealed farm laws, has intensified the ongoing battle over the future of Punjab’s mandi system — one of the strongest in the country.

At a high-stakes meeting chaired by Punjab Agriculture Minister Gurmeet Singh Khuddian, the arhtiyas voiced their vehement opposition, calling for a special assembly session to unequivocally reject the policy. The meeting, attended by representatives from across the State, saw arhtiyas articulating their apprehensions about the draft policy.

The Agriculture Minister has appealed to the arthiyas led by Vijay Kalra and Ravinder Singh Cheema and Rice Millers led by Tarsem Saini to send their inputs and concerns to Punjab Mandi Board so that it could be incorporated in the reply to be sent to the Union Government.

The state president of the Federation of Aarthiya Association Vijay Kalra accused the Centre of attempting to dismantle Punjab’s robust mandi system in favour of corporate control. “This policy is a direct attack on the mandi system, which safeguards both farmers and commission agents,” said Kalra. He further urged the Punjab Government to take legislative action to nullify the Centre’s proposals, echoing the sentiments of agitating farmers who view the draft as a backdoor entry for privatization. 

Agriculture Minister Khuddian reassured all stakeholders of the State Government’s solidarity, emphasizing that Punjab Mandi Board is not just the backbone of its agrarian economy but a model for the rest of Asia. “The draft policy seeks to weaken this system under the guise of reforms. Punjab will not stand by as its agricultural foundation is eroded,” Khuddian said. 

The resistance to the draft policy has fostered an unlikely but powerful alliance between farmers and arhtiyas. While farmers focus on retaining MSP and preventing privatization, arhtiyas fear losing their intermediary role, which has been instrumental in maintaining the mandi ecosystem. 

This alliance amplified Punjab’s voice in opposing what is perceived as an overreach by the BJP-led Central Government. “The Centre’s policies are designed to centralize control and disempower regional economies like Punjab’s. We will not let that happen,” said Kalra. 

Punjab Government, led by Bhagwant Mann, has already announced its intention to formally reject the draft policy. However, the Centre has set a tight deadline of January 10, 2025, for states to submit feedback. In the coming days, the Punjab Assembly may convene a special session to formally denounce the policy. 

The government has also already held brain storming sessions with the officials of Punjab Agriculture University (PAU), the Punjab State Farmers’ Commission, and the state Agriculture Department, besides all other stakeholders seeking their valuable inputs and suggestions on the draft of this policy.

“The state government do not want to leave any of its clauses unconsidered…Also a team of officers and agriculture experts is going through the document, decoding even the messages in between the lines,” said a senior government official.

What is Centre’s Draft Agricultural Marketing Policy

Released on November 25, 2024, by the Union Ministry of Agriculture and Farmers’ Welfare, the draft policy outlined a total of 12 sweeping reforms that include permitting private wholesale markets, and enabling direct wholesale purchases by processors, exporters, organized retailers, and bulk buyers. It also designated warehouses, silos, and cold storage facilities as “deemed markets.” Additionally

The policy also advocated the creation of an e-trading platform, the introduction of a single, unified market fee, a single license for operations, and the streamlining of market fees and commission charges.

However, critics argued that these measures, particularly the promotion of contract farming and public-private partnerships in APMC markets, are eerily reminiscent of the contentious provisions of the three farm laws repealed after massive protests in 2021. 

Chapter 7 of the draft explicitly stated that private markets are essential to create competition and improve farmer-market linkages. Yet, Punjab stakeholders view this as a thinly veiled attempt to bypass state-controlled markets, leaving farmers vulnerable to exploitation by large corporations. 

Punjab’s Stand

Punjab’s mandi system is a cornerstone of its agrarian economy, ensuring assured prices through Minimum Support Price (MSP) and shielding farmers from the volatility of open markets. The state feared that dismantling this system could lead to significant economic and social upheaval.

Aam Aadmi Party (AAP) led State Government argued that the Centre’s new policy threatened to dismantle the state’s well-established mandi system, putting farmers at risk of exploitation by profit-driven private players. There is growing concern across Punjab that these reforms could destabilize the state’s agricultural economy, pushing farmers into an unregulated market where they would lose the protections and stability that the current system provides. 

During the in-depth discussions between the State Government and the arhtiyas that run for more than two hours on Thursday, it came to fore that the draft policy is totally silent on the Minimum Support Price (MSP), which is the most crucial for the state farmers and the clause regarding promoting the private markets will lead to overshadow the Agricultural Produce Market Committee (APMC) markets. They apprehended that once the APMC markets fall into disarray, it would lead to exploitation of the farmers and traditional traders.

“Rural Development Fee (RDF) and the Market Development Fee (MDF) is crucial for maintaining Punjab’s extensive agricultural infrastructure, especially mandi infrastructure and maintaining roads connecting these mandis to the villages.

Khuddian was unequivocal in his criticism of the draft policy’s provisions, particularly the imposition of a single tax system for mandis nationwide. Drawing parallels with the implementation of GST, he warned that such centralization could strip states of their financial autonomy. “The GST experience has already shown us how states can suffer under centralized systems. Punjab will not let history repeat itself,” he declared. 

The draft also proposed the creation of an “Empowered Agricultural Marketing Reform Committee of State Agricultural Marketing Ministers” to harmonize reforms across states. Critics argued that such centralization undermined the federal structure and the states’ ability to tailor policies to their unique needs. 

Farmers are voicing strong opposition, accusing the Union Government of undermining Punjab’s highly regarded APMC system — widely considered the best in the country. They argued that, while they continue to fight for the assurance of legal guarantee on Minimum Support Prices (MSP), the Centre’s plan threatened to strip the state of its financial autonomy and push the agricultural sector into the hands of private corporations.