Agricultural marketing plays a crucial role in the Indian economy, impacting over 60% of the population directly or indirectly involved in farming. It includes all activities that help move agricultural produce from farms to consumers like storage, transportation, processing, and selling. But a question that often arises is: Which list is agriculture marketing in under the Indian Constitution?
To answer that, we must explore the constitutional framework that governs legislative powers in India.
Understanding the Indian Constitution’s Lists
India’s Constitution divides legislative powers between the Centre and States using three lists under Schedule VII:
- Union List – Subjects on which only the Parliament can make laws.
- State List – Subjects exclusive to State legislatures.
- Concurrent List – Subjects where both can make laws, but the Centre prevails in case of conflict.
Constitutional Placement of Agricultural Marketing
Agriculture vs. Agricultural Marketing
It’s important to differentiate between "agriculture" and "agricultural marketing." While they are closely related, they are not the same legally.
- Agriculture, including land, water supply, and agricultural education, is under the State List.
- Agricultural marketing though related also falls under the State List, particularly under specific entries.
Entry of Agriculture in the State List
Under Entry 14 of the State List, agriculture is a state subject. It covers:
- Land
- Agricultural education and research
- Protection against pests and prevention of plant diseases
This implies that States have the sole authority to legislate on agriculture.
Entry of Agricultural Marketing in the State List
Agricultural marketing is also covered under:
- Entry 28: Markets and fairs
- Entry 14: Agriculture, including agricultural extension and marketing
Thus, agricultural marketing, including regulation of APMCs (Agricultural Produce Market Committees), pricing, and licensing of traders, is the responsibility of State Governments.
Union Government’s Role in Agricultural Marketing
Although it's a State subject, the Centre intervenes through broader entries:
- Entry 33 of the Concurrent List: Trade and commerce in, and production, supply and distribution of foodstuffs
This has allowed the Parliament to pass laws affecting trade in farm produce notably, the Essential Commodities Act and the Farm Laws of 2020.
Disputes Over Agricultural Laws
The 2020 Farm Bills sparked massive protests because they appeared to bypass State APMC laws, raising questions about jurisdiction. States argued that these laws violated their legislative rights over agriculture and marketing.
2020 Farm Bills and Constitutional Debate
Three bills passed by the Centre in 2020 including the Farmers' Produce Trade and Commerce Act were based on Entry 33 of the Concurrent List, allowing the Union to regulate foodstuff trade. However, critics argued that the laws infringed upon Entry 28 and Entry 14 of the State List.
This led to a legal and political standoff over whether agriculture marketing falls exclusively under State jurisdiction or is shared.
Role of State Governments in Regulating Mandis
State governments operate APMCs, which regulate who can buy, sell, and trade farm produce in notified markets (mandis). They decide:
- Licensing of traders
- Market fees
- Minimum support prices (in some cases)
This structure was challenged by the central farm laws aiming to create a “One Nation, One Market.”
Concurrent List and Overlapping Jurisdictions
The Concurrent List creates overlap especially in sectors like essential commodities, food security, and trade enabling both the Centre and States to legislate. However, this sometimes leads to ambiguity and turf wars.
Supreme Court Interpretation of Agricultural Laws
The Supreme Court of India, in past judgments, has affirmed the States' primacy in regulating agriculture and local markets, unless the issue pertains to interstate or nationwide trade. For example, in ITC Ltd. vs. Agricultural Produce Market Committee, the Court ruled that States can regulate trade even with private players.
Importance of Constitutional Clarity
Lack of clarity affects:
- Farmers, who face confusion about where and how to sell
- Traders, who deal with overlapping laws
- Policymakers, who struggle with uniform reforms
Clear legal boundaries are essential to build trust and ensure consistency.
Federal Structure and Cooperative Federalism
India’s Constitution promotes federalism, where the Centre and States share powers. Cooperative federalism emphasizes collaboration rather than confrontation — especially vital in sectors like agriculture where local conditions vary widely.
Suggestions for Harmonizing Laws
Experts suggest:
- Creating a Model APMC Act for all States
- Promoting inter-state cooperation
- Enhancing Centre-State dialogue to align trade and market goals
Case Study: Punjab and Haryana's APMC Models
These states have well-developed APMC networks, with strong mandi systems ensuring stable farmer incomes. Their resistance to central farm laws was largely due to concerns over losing this protective framework.
Conclusion
So, which list is agriculture marketing in? Constitutionally, it falls under the State List, specifically Entries 14 and 28. However, aspects of agricultural trade also appear in the Concurrent List, leading to shared responsibility. For the benefit of farmers and the economy, collaborative policymaking between the Centre and States is the way forward.
FAQs on Which List Is Agriculture Marketing In
Q1. Is agricultural marketing in the State or Union List?
Agricultural marketing is primarily in the State List, Entries 14 and 28.
Q2. Can the Central Government make laws on agricultural marketing?
Yes, under Entry 33 of the Concurrent List, the Centre can legislate on foodstuff trade.
Q3. What were the 2020 farm laws based on?
They were based on Entry 33, concerning trade and distribution of foodstuffs.
Q4. Why do States oppose central laws on agricultural marketing?
States see it as an intrusion into their exclusive legislative domain under the State List.
Q5. How are APMCs regulated?
APMCs are established and controlled by individual State Governments.
Q6. What is the Supreme Court’s stance on agricultural marketing laws?
It has upheld States' rights but also acknowledged the Centre's limited trade powers.