CII Demands Market Prices, Land Law Repeal in Budget Push

AGRICULTURE
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AuthorKavya Nair|Published at:
CII Demands Market Prices, Land Law Repeal in Budget Push
Overview

Industry body CII has urged the government to replace minimum support price (MSP) procurement with market-driven pricing to foster crop diversification for India's 2026-27 Budget. CII also called for repealing outdated land ceiling laws, arguing they hinder farmer income growth and economic expansion. The proposals aim to reform agricultural policies, reduce market distortions, and encourage private investment for a more competitive agri-ecosystem.

Agri Sector Reforms Demanded for Budget 2026-27

The Confederation of Indian Industry (CII) has presented its wishlist for the upcoming 2026-27 Union Budget, calling for a significant overhaul of agricultural procurement and land policies. The industry body advocates for a decisive shift away from minimum support price (MSP) based procurement towards a market-driven pricing mechanism. This change, CII argues, is crucial to encourage farmers to diversify into more sustainable and profitable crops.

Repeal of Land Ceiling Laws

CII's recommendations also include the repeal of existing agricultural land ceiling laws. These laws, once intended for land redistribution, are now seen as significant impediments to increasing farmers' incomes. CII stated that successful farmers are unable to expand their landholdings, and consequently their earning potential, due to these restrictions. Removing these laws would allow for economic growth within the farming community.

Addressing Market Distortions

The industry association highlighted that current policies, while often designed to protect farmers, have inadvertently led to market inefficiencies, price volatility, and stifled innovation. CII proposes recalibrating these policies to foster a more competitive, transparent, and demand-driven agricultural market ecosystem. Reforms in price stabilization and food distribution are deemed critical.

Encouraging Private Investment and Trade

CII also pushed for phasing out or revising policies like stock limits, price controls, and export bans to enable clearer market signals. Consistent export policies, decoupled from domestic inflation controls, would bolster India's global market credibility. Furthermore, the body stressed the importance of protecting intellectual property rights to stimulate private investment in R&D for areas like climate-resilient crops and biotechnology.

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