Indian farmers allowed to sell products directly to traders


Indian farmers allowed to sell products directly to traders

06/10/2020

New regulations eliminate the need for farmers to supply their products to over 7,000 regulated Indian wholesale markets

The Indian Ministry of Farming stated that it is necessary to allow farmers to sell their products directly to wholesale buyers, such as trading companies, food processing companies and large retailers. It is reported by Fruit-inform with reference to Reuters.

The Cabinet of Ministers of India adopted a decree on changing the rules for marketing agricultural products by farmers. New regulations eliminate the need for farmers to supply their products to over 7,000 regulated Indian wholesale markets. At the same time, consumers will be able to make purchases directly.

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In India, obsolete law required all farmers to sell their products in wholesale markets in most of the 29 states of the country. This law was aimed at protecting farmers from exploitation by institutional buyers, such as large trading houses, large retailers, and food processing enterprises.

However, many farmers believed that this impeded the sale directly to large buyers such as Wal-Mart Stores and Tesco and deprived the farmers of their own profits.

Quarantine restrictions caused by the coronavirus pandemic have led to a reduction in wholesale market operations, the only food delivery channel for 1.3 billion people in India.

Now wholesale markets will continue to operate as usual, as the government has not repealed the current law. However, farmers have the opportunity to actually directly sell their products.

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