The Centre’s recent decision to relax wheat stockholding limits for private traders should be welcomed—especially by farmer organizations. This move is likely to boost private demand for wheat and could push up market prices, benefiting growers directly. With bulk traders now allowed to stock up to 3,000 tonnes (up from 260 tonnes), and retailers up to 10 tonnes (from just 4 tonnes), the liberalization signals confidence in the market and a healthy procurement season.In my earlier op-ed dated 13th May 2025, I had discussed the impact of higher-than-usual private purchases of wheat this year at prices above the MSP.
Ironically, this was one of the very provisions targeted in the now-repealed farm laws. One of the central amendments sought was to decontrol agricultural commodities under the Essential Commodities Act—a colonial-era relic that gives the state sweeping powers to cap prices, seize stocks, and penalize traders. These powers, meant for wartime scarcity, are fundamentally incompatible with a modern, market-oriented agricultural economy. Many farm leaders resisted this reform then, viewing it as a threat. Today, however, the same change—when introduced quietly through executive action—is being viewed with optimism.
If farmer unions are truly committed to improving farm incomes and enabling better price discovery, they should go further: press for the complete removal of agricultural produce from the ambit of the Essential Commodities Act and demand its exclusion from the Ninth Schedule of the Constitution.
This Schedule, intended to protect progressive land reforms from judicial scrutiny, has since been misused to shield all kinds of laws—even draconian ones—from constitutional challenge. Placing the Essential Commodities Act in the Ninth Schedule prevents courts from reviewing its excesses, allowing unchecked executive power to override market logic and farmers’ rights. This is deeply undemocratic. Legal accountability must not be sacrificed at the altar of arbitrary control.
On another front, the Centre’s decision not to exclude Punjab from the MSP (Minimum Support Price) discussions is welcome. The message is clear: in a federal democracy, the Union government cannot shut out states—especially those like Punjab with a high stake in agriculture.
Yet farmer organizations must also reflect on their past conduct. During the last round of negotiations in 2021, many unions, adopted an all-or-nothing posture. This rigid approach—”my way or the highway”—ultimately derailed meaningful progress which could have followed. These organizations are pursuing their own hidden agenda. Some are controlled by vested political forces from within and abroad, while some have political and financial greeds. Farmers must understand. Earlier the better.
Dialogue is a two-way street. Compromise is not surrender or betrayal; it is a necessary instrument of governance and reform. Trust is built not by walking out of talks or blocking national highways, but by staying at the table with data, alternatives, and a readiness to negotiate in good faith.
If India is to become the third-largest economy, in the world—as its aspirations rightly demand—the biggest thrust must come from agriculture. No sector has a broader base, deeper reach, or more transformative potential. But this requires bold reforms to augment agricultural growth: liberalizing markets, attracting private investment, enabling post-harvest infrastructure, and encouraging the adoption of modern technologies. An efficient, productive, and globally competitive agricultural sector can be the engine of inclusive prosperity.
If India’s farm economy is to be future-ready, both the Centre and farmer organizations must evolve. The Centre must shed its reliance on outdated tools of control. Farmer unions must overcome the impulse to resist reform merely because it originates from the “other side.”
From wheat and MSP today to pulses, irrigation, storage, and new farming techniques tomorrow—reforms in agriculture are not just coming, they are needed. The real choice before farmer organizations is whether to help shape these changes for the better or to resist and be left behind. This is the time to demand smart policies, better infrastructure, fair markets, and real support—not just slogans. With unity, understanding, and a practical approach, farmers can ensure that reforms lead to real progress on the ground.