Abstract:
The Punjab Agricultural Produce Act, 1961 was enacted to regulate agricultural markets, protect farmers from exploitative practices and ensure fair pricing for their produce. This paper examines the extent to which the Act safeguards the economic rights and livelihoods of farmers in Punjab. The paper analyses relevant statutory provisions creating a correlation between the various provisions of the Act and the provisions governing fundamental rights in the Constitution of India. The researcher has also added various judicial pronouncements in the paper so as to create a nexus between the judicial mindset and the core values of the Act. The paper also sheds light on the persistent challenges such as political capture of market committees, delayed remunerative payments, lack of digital transparency and ineffective grievance mechanisms which undermine the practical realization of the economic rights of farmers. The paper also contains the various initiatives which could be taken by the legislators so as to make sure that the Act is able to achieve its goal of protecting the livelihoods of the farmers.
Keywords:Punjab Agricultural Produce Markets Act, 1961; Farmers’ Rights; Fair Pricing; Market Access; Grievance Redressal; Market Transparency; Agricultural Governance; Judicial Interventions
- INTRODUCTION
Punjab is situated in the northern part of India bordered by Jammu and Kashmir to the north, Himachal Pradesh to the east, Haryana to the south and Rajasthan to the southwest.[1] Punjab has an area of 50,362 km2, which is 1.5% of the total geographical area of the country.[2] Punjab’s climate is influenced by the Himalayas in the north and the Thar Desert in the south and southwest.[3] Punjab had been a star performer in agriculture during the heydays of the green revolution.[4]
Agriculture is largely dominated by marginal and small farmers in all Indian states.However, the case is different in Punjab, where the sector is largely dominated bysemi-medium and medium farmers.Physical infrastructure such as irrigation, power and road play an important rolein agricultural growth. Investment in these sectors facilitated the intensive use ofinputs. Any farmer who is toiling in the sun to grow the produce is expecting good returns from it. In such a case Punjab has developed a very effective system of agriculture marketing by introducing mandis in Punjab. The specific places regulated by the State government are called mandis. The commodities with these agricultural markets are sold on the minimum support price fixed by the Commission for Agriculture Costs and Price (CACP).The Commission for Agriculture Costs and Price is the new name given to the agriculture produce commission. The Commission was established in 1985 and works under the Department of Agriculture and Farmers Welfare, Government of India.[5] The Commission was established in 1985 and works under the Department of Agriculture and Farmers Welfare, Government of India.Currently, the Commission has one Chairman, one Member Secretary, one Member (Official) and two Members (Non-Official).[6]
The Punjab Agriculture Produce Markets Act, 1961 was enacted by the State government to ensure provision of MSP to the farmers. On 26th May, 1961 the Punjab State Agricultural Marketing Board (PSAMB) was established by the State Government under the Punjab Agricultural Produce Markets Act, 1961 in the state of Punjab.The prime objective of the PSAMB was to regulate and monitor the marketing network of sale, purchase, storage and processing of processed or non-processed agricultural produce.
[1] Government of Punjab, Statistical Abstract of Punjab 2023 (Economic Adviser to Government of Punjab, Chandigarh, 2024) 1
[2] Government of India, Ministry of Statistics and Programme Implementation, Statistical Year Book India 2024 (MOSPI, New Delhi, 2024) 3; Government of Punjab, Statistical Abstract of Punjab 2023 (Economic Adviser to Government of Punjab, Chandigarh, 2024) 1
[3] Government of Punjab, Department of Agriculture and Farmers Welfare, State Agricultural Profile: Punjab (Government of Punjab, Chandigarh, 2023) 2–3
[4] Ashok Gulati, Ranjana Roy and Siraj Hussain, “Performance of Agriculture in Punjab” in Ashok Gulati, Shweta Saini and Siraj Hussain (eds.), Revitalizing Indian Agriculture and Boosting Farmer Incomes (Springer Nature, Singapore, 2021) 77, 77–78.
[5] Government of India, Ministry of Agriculture and Farmers Welfare, Commission for Agricultural Costs and Prices (CACP): About Us (Department of Agriculture & Farmers Welfare, New Delhi, 2025) available at :https://cacp.da.gov.in?utm_source=chatgpt.com (last visited June 7, 2026).
[6] Government of India, Ministry of Agriculture and Farmers Welfare, Price Policy for Kharif Crops (Commission for Agricultural Costs and Prices, New Delhi, latest edition).