Experts call for shaping inclusive markets for small farmers to enhance livelihood security

India's agricultural sector, employing over half of its workforce, stands at a critical juncture. While it is the backbone of the rural economy, small and marginal farmers, who constitute the vast majority, often grapple with severe challenges. These include fragmented landholdings, lack of access to credit and modern technology, and most significantly, inadequate access to fair and remunerative markets. It is against this backdrop that a two-day conference, titled “Food systems transformation: From ecological farms to fair markets,” organized by the Banswara-based voluntary group Vaagdhara, gains immense significance.

The conference highlighted a crucial need: shaping inclusive markets for small farmers to enhance their livelihood security. This call underscores a shift from merely focusing on agricultural production to ensuring that farmers receive equitable returns for their produce. Historically, Indian agricultural policy, particularly after the Green Revolution in the 1960s, primarily emphasized increasing output. While this addressed food security to a large extent, the marketing aspect remained largely underdeveloped, often leaving farmers at the mercy of intermediaries and fluctuating market prices. The Agricultural Produce Market Committee (APMC) system, established by state laws, aimed to protect farmers but has often been criticized for creating monopolies, cartelization, and lack of transparency, thereby hindering fair competition and farmer income.

Key stakeholders in this discourse include small and marginal farmers themselves, who are the primary producers and beneficiaries of any successful market reform. Organizations like Vaagdhara, a voluntary group specifically working on tribal livelihood issues in Banswara, Rajasthan, play a vital role. Such civil society organizations act as crucial bridges between grassroots realities and policy-making, advocating for marginalized communities and facilitating sustainable development. Experts from academia, policy think tanks, and agricultural science contribute by providing evidence-based solutions and policy recommendations. The government, both central and state, is a pivotal stakeholder, responsible for creating an enabling policy and regulatory environment, investing in infrastructure, and implementing welfare schemes.

For India, the implications of shaping inclusive markets are profound. Economically, it can lead to higher farmer incomes, reduce rural poverty, and stimulate the rural economy, which in turn contributes to overall national GDP growth. Socially, enhanced livelihood security addresses issues of food security, malnutrition, and rural distress, aligning with Sustainable Development Goals (SDG 1: No Poverty, SDG 2: Zero Hunger). Politically, it can mitigate farmer protests and discontent, fostering greater stability and trust in governance. The focus on 'ecological farms' also ties into India's commitment to sustainable agriculture, climate resilience, and preserving biodiversity.

India's Constitution, through its Directive Principles of State Policy (DPSP), provides a foundational framework for such initiatives. Article 38 mandates the State to secure a social order for the promotion of the welfare of the people, striving to minimize inequalities in income and status. Article 39 directs the State to ensure that citizens have the right to an adequate means of livelihood, and that the operation of the economic system does not result in the concentration of wealth. Furthermore, Article 43 calls for securing a living wage and conditions of work ensuring a decent standard of life. The 73rd Constitutional Amendment Act, 1992, which institutionalized Panchayati Raj, also empowers local bodies to plan for economic development and social justice, including agriculture. Government policies like the promotion of Farmer Producer Organizations (FPOs) under schemes such as the 'Formation & Promotion of 10,000 FPOs' by the Ministry of Agriculture & Farmers Welfare, and digital marketing platforms like e-NAM (National Agriculture Market), are direct attempts to create inclusive markets. The National Policy for Farmers, 2007, also emphasized the need for improving agricultural marketing.

The future implications are multi-faceted. There is an increasing emphasis on strengthening FPOs to empower farmers with collective bargaining power, better access to inputs, technology, and direct market linkages, thus bypassing exploitative intermediaries. The rise of agri-tech startups and digital platforms offers new avenues for transparent and efficient market access. Furthermore, the call for 'ecological farms' points towards a future where sustainable and climate-resilient agricultural practices are integrated with market mechanisms. This requires sustained policy support, investment in rural infrastructure, capacity building for farmers, and encouraging public-private partnerships. Addressing challenges specific to tribal livelihoods, as Vaagdhara does, involves ensuring the effective implementation of laws like the Provisions of the Panchayats (Extension to Scheduled Areas) Act (PESA), 1996, and the Forest Rights Act, 2006, which grant greater control over natural resources and traditional livelihoods to tribal communities, thereby enhancing their market participation.