#cartelization

The problems of existing regulated markets — cartelization, use of unfair practices, interlocking of trade with provision of credit, and negligible participation of women — are rooted in lack of implementation of agrarian reforms and effective democratisation of the social, political and economic institutions in Indian villages. Failure of governance and ineffective regulation are an outcome of political dominance of big capitalists, merchants and landlords. The end to economic exploitation of peasantry can only be achieved through implementation of redistributive agrarian reforms and effective democratisation. These are critical to make the regulatory systems more effective. Farmers need more effective regulation, and not less regulation, in the arena of agricultural marketing. Making agriculture remunerative for farmers is a key challenge. This requires an overarching review of policy changes that have been introduced in the areas of input pricing, trade liberalisation and prices of agricultural produce as part of the liberalisation programme. These changes have been responsible for the deep agrarian crisis that rural India finds itself in today.