Cooperative Marketing Organization Policy on Economic Exploitation of Farmers by Private Traders: A Case Study of Solapur District

Abstract Farmers in India, especially those in the Solapur district of Maharashtra, face deep-rooted economic exploitation due to the dominance of private traders in agricultural marketing. These traders often manipulate prices, delay payments, and form cartels, leaving farmers vulnerable and financially unstable. Cooperative Marketing Organizations (CMOs) have emerged as an institutional solution aimed at empowering farmers through collective bargaining, fair pricing mechanisms, timely payments, and market linkages. This study explores the role and effectiveness of CMOs in mitigating the economic exploitation of farmers in Solapur. Using secondary data from APMCs, NAFED, and other government sources from 2021 to 2023, the study presents a comparative price analysis of onion and sugarcane marketing through private traders and CMOs. Case studies, including that of onion farmers in Pandharpur, reveal that CMOs provide significantly higher returns—up to 40% more—compared to private intermediaries. The paper also compares Solapur’s cooperatives with successful models such as AMUL (Gujarat) and Hopcoms (Karnataka) to identify best practices. Findings suggest that CMOs in Solapur suffer from governance inefficiencies, limited financial autonomy, and poor digital integration, reducing their impact. The study concludes with policy recommendations emphasizing digital platforms, regulatory enforcement, governance reforms, and farmer education. Strengthening CMOs can offer sustainable and inclusive market solutions for farmers.