Chandigarh, April 29, 2025 – Sukhpal Singh Khaira, MLA and Chairperson of All India Kisan Congress, today expressed profound anguish over the persistent exploitation of Indian farmers by corporate business houses, facilitated by systemic flaws in the government-sponsored agricultural marketing system. In a scathing critique, Khaira called out both the Bharatiya Janata Party (BJP)-led central government and Punjab Chief Minister Bhagwant Mann’s Aam Aadmi Party (AAP) government for their failure to protect farmers from corporate profiteering, which he described as “heartbreaking and unacceptable.”
Khaira highlighted a glaring disparity in the wheat supply chain, where farmers receive a mere Rs.2,425 per quintal for their produce under the government’s Minimum Support Price (MSP) procurement system, while corporate retailers like Amazon, Flipkart, and other e-commerce giants sell packaged and branded wheat at retail prices ranging from Rs.10,000 to Rs.15,000 per quintal. “This is nothing short of willful exploitation,” Khaira stated. “Our farmers toil day and night to feed the nation, yet they are denied a fair share of the profits, while corporates amass wealth by repackaging and reselling their produce at exorbitant markups.”
Systemic Flaws in the Agricultural Marketing System
Khaira emphasized that the exploitation stems from deep-rooted flaws in India’s agricultural marketing framework, particularly the lack of regulation over post-procurement value addition and retail pricing. While the MSP system ensures procurement of wheat and paddy at guaranteed prices, primarily in states like Punjab and Haryana, it does not address the massive profit margins captured by corporates in the downstream supply chain. According to Khaira, this imbalance is exacerbated by the government’s reluctance to reform the Agricultural Produce Market Committee (APMC) system or introduce measures to ensure farmers benefit from value-added products.
“The APMC system, while critical for MSP procurement, has been undermined by trader cartels and now faces threats from deregulation policies that favor corporates,” Khaira noted. He referenced the repealed 2020 farm laws, which farmers feared would dismantle MSP and APMC mandis, and warned that the Centre’s recent draft National Policy Framework on Agricultural Marketing (2025) appears to reintroduce similar provisions “through the backdoor.”
Allegations of Collusion and Neglect
Khaira accused the BJP-led central government of prioritizing corporate interests over farmers, citing policies that weaken procurement assurances and expose farmers to market volatility. He also criticized Punjab CM Bhagwant Mann for aligning with the BJP’s agenda.
The MLA argued that Mann’s failure to deliver on pre-poll promises, such as enacting a state law to guarantee MSP for over 20 crops, has left farmers vulnerable to exploitation. “Mann once championed farmers’ rights, but his actions now betray the very people he vowed to protect,” Khaira added,
To address the exploitation, Khaira proposed a series of reforms to ensure farmers receive a fair share of the value chain:
1. Regulate Retail Pricing: Introduce policies to cap profit margins on agricultural produce sold by corporates, ensuring farmers receive a percentage of retail profits.
2. Strengthen MSP Guarantees: Enact a national law to make MSP a legal right for all 23 crops, with mandatory procurement to protect farmers from market fluctuations.
3. Reform APMC Mandis: Address malpractices by trader cartels and enhance infrastructure to support farmers, rather than dismantling the APMC system.
4. Promote Farmer-Led Value Addition: Establish cooperatives and farmer-producer organizations (FPOs) to enable farmers to process, package, and brand their produce, capturing higher market value.
5. Transparent Supply Chain: Mandate transparency in pricing from procurement to retail, with public disclosure of margins earned by intermediaries and corporates.
Khaira also urged the government to expand procurement to cover more crops and small farmers, as recommended by experts during the 2020 lockdown disruptions. “If the government can procure 92% of Punjab’s rice and 72% of its wheat, why not extend similar support to pulses, oilseeds, and other crops?” he questioned, citing data from 2019–20.
Khaira called on farmers, civil society, and opposition parties to unite against corporate exploitation and pressure the government for systemic change. “The All India Kisan Congress stands firmly with farmers in their fight for justice,” he declared. “We will not rest until the marketing system is reformed to ensure dignity and prosperity for e every farmer.
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