Sindh Farmers Challenge Deregulation's Middleman Monopoly

The Sindh Abadgar Board criticizes a provincial agriculture deregulation policy, claiming it enables middlemen to exploit farmers by buying low and selling high. The policy allegedly fails to foster competitive markets, leaving growers with financial losses while input costs rise. The board demands better regulation to protect farmers' interests.

The Sindh Abadgar Board (SAB) has voiced strong criticism against the provincial government's agriculture deregulation policy, stating that the lack of market oversight has provided financially robust middlemen the opportunity to exploit farmers. According to a report by The Express Tribune, these intermediaries allegedly purchase crops at low rates and sell them to consumers for significantly higher prices.

During a meeting in Hyderabad, chaired by SAB President Mahmood Nawaz Shah, farming representatives argued that the policy has failed to create competitive agricultural markets. Instead, it has resulted in increased prospects for what they describe as 'cash-rich and exploitative' intermediaries to profit at the expense of growers. The farmers estimated substantial financial losses for themselves, amounting to tens of billions of rupees over the past two years due to this unchecked exploitation.

Food inflation soared to about 29 percent during this period, while the prices farmers received for their crops either decreased or remained stagnant. Rising costs of fertilisers, pesticides, seeds, and fuel, coupled with stagnant returns from crops, are rendering agriculture less attractive to growers. The SAB also highlighted that government subsidies are reaching only a small fraction of farmers, exacerbating financial strains. The farmers are urging for a reassessment of policy to prevent prolonged losses and preserve farming viability.