Budget 2014: National markets to be set up to break the monopoly of middlemen in mandis

The government will accelerate setting up of a national market so that private mandis can break the monopoly of middlemen in mandis where farmers are forced to sell their produce, the FM said, continuing his resolve to crack down on intermediaries who are blamed for rising prices.

"To accelerate setting up of a national market, the central government will work closely with the states to re-orient their respective APMC Acts, to provide for establishment of private market yards and private markets," FM Arun Jaitley said on Thursday.

In another step to help farmers face price volatility, the government has decided to set up a ' Price Stabilisation Fund' with a corpus of Rs 500 cr. Food policy analyst Devinder Sharma said the fund can help end minimum support prices.

"Unlike in Punjab, farmers in Bihar, UP don't get assured returns on crops from the government. The fund will help them," he said.