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by bythckr 1960 days ago
> Once the mandis are gone

Where are the mandis going? If they are non-competitive, they are out. But if they lose their non-sense and compete, they can be around. Also, the people working at the Mandis (Mandi employees), they are also free to start their own company that compete with the Mandis.

> what prevents a monopolized market from then strong-arming farmers into bad deals? This law, which prevents monolopy. The current monopoly is the Mandi. How will be farmers be strong-armed to a bad deal if they have options to choose?

> This is factually incorrect.

My mistake, "But can ONLY sell the produce to the local Mandi at some states". Punjab is an example of were Mandis have complete power. While in other states like TN, Bihar, MP, UP and more have already changed the rule.

> Only about 30% of produce is sold in mandis.

that is a bit misleading as Mandis dont have prominence is all states. But in Punjab where they are there, no one is allowed.

2 comments

thanks bythckr for your detailed answer. I got a better understanding of the very fragmented nature of politics in India; Wishing you all the best, and I really hope that eventually the Indian model of governance will be regarded as superior over the Chinese model (which, unfortunately, has been gathering a lot of fans recently) I think that in a way both India and China are leading the way for the rest of us, because your countries have to cope with a very large number of people and very complex societies.
> Where are the mandis going? If they are non-competitive, they are out.

They would be non-competitive because of the no taxation clause that the bill has -- allowing big corp to undercut the mandis. Not to mention that corps are known to take losses just to establish market monopoly (see Jio).

> But in Punjab where they are there, no one is allowed.

I don't understand why you cite the mandi as a monopoly, when in the existing system a farmer can choose to sell anywhere they want?

Let the big corps procure from the farmers, at a "competitive price" as you say. Why should they deserve tax breaks?

The fact of the matter is that the mandi is desirable and has contributed to the material success of Punjab's farmers. There is no doubt that there are inefficiencies and leakages, but to do away with them in deference to the gods of the "free market" is a bit questionable. Unrelated quote: "the quality of public education might not be very good, but that doesn't mean we do away with it".

As for your comparison with other states, I would recommend you check out this article: https://www.hindustantimes.com/opinion/why-punjab-should-not...

Why will anyone pay the Mandi cess if they are not operating in a Mandi?
Because the APMC has to pay the cess and they supply India's PDS and various important things? Or would you have them do away with those too?
I would have people directly pay to PDS instead going through another beaurocratic and potentially corrupt layer.