Food inflation in states with strong 'mandis' & those without: Status check

One big argument surrounding the farm laws is once trade starts shifting out of the regulated mandis lured by low taxes, it will lead to withering away of the Agricultural Produce Market Committees (APMCs), leaving farmers at the mercy of corporates and big business houses. 

Time and again, Bihar has been cited as an example where farmers’ incomes have suffered due to the absence of regulated mandis. How has this system impacted the consumers and whether they stand to gain in states which have robust mandi systems or which don't have such a structure? 


The following chart shows the average retail food and beverages inflation of Punjab and Haryana (states that have a well-structured system) as compared with Bihar, where APMCs where made redundant few years back. 



Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel