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LATEST NEWS UPDATES | Punjab government plans to pay farmers directly -Madhvi Sally

Punjab government plans to pay farmers directly -Madhvi Sally

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published Published on Oct 7, 2013   modified Modified on Oct 7, 2013
-The Economic Times


NEW DELHI: With paddy arrivals yet to pick up across Punjab, the state government now plans to make direct payments to farmers. The move is aimed to protect farmer's interest particularly the small and marginal from being exploited by the commission agents/arthiyas.

The issue of direct procurement and payment to farmers had been delayed for several years with both the Congress ruled and Akali-BJP government not keen to upset the strong lobby of arthiyas. Even with the new system the arthiyas would still continue to handle the grain and get 2.5% commission from the state government.

The government is also expecting a few progressive farmers only to register to the market committee for direct payments this season. Apart from Punjab, Haryana and parts of Rajasthan, government procurement agencies across the country make direct payment to farmers through cheques and also electronically.

"This paddy season we have started the system where we are giving direct payments to farmers," said Punjab Food Minister Adesh Partap Singh Kairon. Over 13.5 million tonne of paddy will be procured by government agencies worth Rs 18,000 crore.

A government official while giving details said that as on date 679 farmers had registered with the mandi board to avail direct payments. "A farmer can register with the market committee in their area, who will provide them a number to be submitted to 14 approved banks. The banks where the farmer should have an account will issue farmers the 'RuPay' card," said the official.

As per the Punjab government, there are 12 lakh farmers in the state with over 25,000 registered arthiyas/commission agents. For years, central and state agencies procuring wheat and paddy, have been issuing cheques to firms operated by arhtiyas for onward payment to farmers. The Food Corporation of India (FCI) has been proposing to directly procure and make payments to farmers.

It had earlier made few attempts in 2010 and 2011, but had to withdraw it in few days. PP Singh, director procurement, FCI said that a farmer must get price for his produce and it should be though account pay checque or by e-mode so that agencies were able to establish a trail of payments.

"A weak system leads to distress sale and farmer needs to be protected from arthiyas," he said. Farmer union leaders say that the proposal has recently been announced and not many farmers would be able to avail the scheme. "We will make sure it is a success during the wheat procurement season," said Ajmer Singh Lakhowal, president of the Punjab unit of Bharti Kisan Union and chairman of the Punjab Mandi Board.

Lakhowal said that slowly they would push government or agencies like FCI to directly procure grains from farmers. "Initially we expect progressive farmers to register followed by others. The farmers will not have to wait for arthiyas to give payments which lag from 15 days to few months. Nor will the arthiya be able to cut payment of farmers," he said.

Chairman of the Bharat Krishak Samaj (an association representing farmers interest), Ajay Vir Jakhar said that the success of the direct payments would take few seasons. "Farmers have to be persuaded to have bank accounts and even educated on the benefits of electronic transfers," he said.


The Economic Times, 7 October, 2013, http://economictimes.indiatimes.com/news/economy/agriculture/punjab-government-plans-to-pay-farmers-directly/articleshow/23623558.cms


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