“Uttar Pradesh’s farmer markets are transforming rural economies by enabling direct sales, cutting out middlemen, and ensuring better prices for farmers. With initiatives like e-NAM and PM-AASHA, over 23 million farmers are benefiting from enhanced market access and schemes like PM-KISAN, boosting incomes by 10–15%. Challenges like infrastructure gaps persist, but digital platforms and government support are driving growth.”
Uttar Pradesh Farmers Reap Benefits from Direct Market Access
In Uttar Pradesh, the agricultural landscape is undergoing a quiet revolution as farmer markets and direct sales initiatives empower rural communities. With agriculture employing over 44.8% of India’s workforce, the state’s focus on improving market access for its 23 million farmers is yielding tangible results. Schemes like the National Agriculture Market (e-NAM) and Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) are pivotal, enabling farmers to bypass intermediaries and secure better prices for their produce.
The e-NAM platform, connecting 1.74 crore farmers to digital marketplaces, has revolutionized price discovery. Farmers in UP can now sell directly to buyers across the country, reducing dependency on local mandis where middlemen often dictate terms. In 2024–25, UP alone saw over ₹4,600 crore disbursed to farmers under PM-KISAN, with ₹48 crore reaching 221,000 farmers in Varanasi. A 2023 study showed PM-KISAN increased household expenditure by 10–15%, directly boosting rural consumption.
Direct sales through farmer-managed markets, inspired by models in Tamil Nadu and Andhra Pradesh, are gaining traction. These markets allow small and marginal farmers—86% of UP’s agricultural households with less than two hectares—to sell directly to consumers, eliminating middlemen. The PM-AASHA scheme further supports this by offering price support and deficiency payments when market prices dip below the Minimum Support Price (MSP). In 2024, UP’s rabi sowing exceeded last year’s by 2%, and tractor sales surged 23.4% in Q4 FY25, reflecting growing mechanization and optimism.
Digital tools are bridging information gaps. Platforms like the Millet Farmers Hub on social media connect farmers with buyers, ensuring fair pricing for crops like millets, which are regaining popularity in rural diets. However, challenges remain. Rural markets, or haats, covering 22,932 locations in India, often lack infrastructure to serve as effective price discovery points. The Dalwai Committee recommends upgrading these into business hubs to support small farmers, who account for 85% of landholdings.
Climate vulnerabilities and fragmented landholdings also hinder progress. Projections indicate irrigated rice yields could drop 10% by 2050 due to climate change, squeezing incomes. Low productivity—Indian rice yields are one-third of China’s—underscores the need for mechanization and research. Government schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY), covering 5.5 crore farmers, provide a safety net against crop losses, but systemic inefficiencies persist.
UP’s focus on agro-processing and high-value crops like millets and dairy offers hope. The livestock sector, contributing over 25% to agricultural GDP, is a key income source for 70% of rural families. Initiatives like the Maharashtra Agricultural Competitiveness Project are being studied to reform wholesale markets and enhance farmer access. With an above-normal monsoon forecast for 2025, UP’s farmers are poised for a strong kharif season, further boosting incomes.
Disclaimer: This article is based on recent news, reports, and government data from sources like Policy Circle, The Hindu BusinessLine, and the World Bank. Information is accurate as of August 2025 but may be subject to change. Readers are advised to verify details through official channels.