Draft National Policy Framework on Agricultural Marketing (NPFAW)

GS 3 – AGRICULTURE

Why in News?

The Ministry of Agriculture and Farmers’ Welfare has released the draft NPFAW for public feedback.

Highlights of the Draft NPFAW

Vision – Create a strong marketing system to help farmers access diverse markets and get the best prices for their produce.

Key Features

• Direct Purchases – Allows processors, exporters, retailers, and bulk buyers to buy directly from farmers.
• Unified National Market – Proposes a single market fee and license system across India.
• More Marketing Options – Declares silos and cold storages as official markets/yards.
• E-Trade Platforms – Promotes private e-trading platforms for agricultural products.
• Contract Farming – Supports agreements between farmers/FPOs and processing/exporting companies.
• Development of GrAMs – Plans to upgrade 300 rural agricultural markets (Grameen Agricultural Markets) annually.
• Digital Marketing – Expands the e-NAM platform into a full-scale Digital Marketing Portal.

Purpose of the Policy

• Increase Farmers’ Income: Give farmers better access to markets and fair prices.
• Price Stability: Reduce market and price fluctuations.
• Boost Efficiency: Encourage competition with multiple marketing channels.
• Digital Integration: Use technologies like blockchain for seamless production-to-market connections.
• Revamp APMCs: Turn APMCs into value-chain service providers instead of fee collectors.
• Adapt to New Dynamics: Build end-to-end value chain infrastructure and embrace digital advancements.

Concerns with the Policy

1. Insufficient Research – No independent studies on the success or challenges of private wholesale markets.
2. Farmer Risks – Farmers may lose bargaining power with private storage facilities during price volatility.
3. No Profit Sharing – Lacks rules for traders to share profits with farmers.
4. Uniform Policy – Ignores regional differences in farming practices and needs.
5. Federalism Issues – Centralized reforms may encroach on states’ rights under the Constitution.
6. Lack of Price Support – No provisions for Minimum Support Prices (MSP) or assistance during distress sales.