Market and Technological Reforms in Indian Agriculture: Needs for a Wholistic Approach

This paper critically evaluates the policy and institutional dynamics underlying India's agricultural policy and technological evolution, with a focus on liberalization of agricultural markets and promote private investment in infrastructure such as cold chains and warehouses. The paper examined the demands for a legally guaranteed Minimum Support Price (MSP) and also structural constraints in existing market arrangements. Drawing on various government reports and scholarly literature, the analysis shows that politically influenced Agricultural Produce Marketing Committees (APMCs) have historically limited private investment and hindered market modernization. Negligible procurement of pulses and oilseeds at MSP constrained crop diversification, while assured procurement of paddy and wheat ensured price stability but contributed to monocropping systems, dietary imbalance and persistent undernutrition among women and children. Farmers cultivating non-cereal crops continue to face price volatility, low profitability, and increasing import dependence. The paper proposes a restructured MSP framework built on income insurance, combining limited cereal procurement, Price Deficiency Payments, and strengthened APMCs and Farmer Producer Organisations.