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LATEST NEWS UPDATES | Why Punjab finally relented on direct payment for farmers at 2-hour meet with Piyush Goyal -Chitleen K Sethi and Samyak Pandey

Why Punjab finally relented on direct payment for farmers at 2-hour meet with Piyush Goyal -Chitleen K Sethi and Samyak Pandey

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published Published on Apr 9, 2021   modified Modified on Apr 11, 2021

-The Hindu

Rabi marketing season kicks off in Punjab Saturday but, until Thursday, the state and central governments had been locked in a tussle over the mode of payment to farmers.

Chandigarh/New Delhi: A “threat”, some fireworks, and a concession — it was after a super-charged two-hour meeting between its ministers and Union Consumer Affairs, Food and Public Distribution Minister Piyush Goyal Thursday that Punjab finally agreed to introduce direct benefit transfer (DBT) for foodgrain procurement this season.  

The Rabi marketing season kicks off in Punjab Saturday but, until Thursday, both sides had been locked in a tussle over the mode of payment to farmers. While Punjab wanted to continue with the current system of routing the payments through arhatiyas or commission agents, the central government was batting for a shift to online, direct transfers to farmers, a change it has also effected in other states where foodgrains are procured from.

On its part, Punjab sought to explain the role the arhatiyas play in the local agricultural framework, including providing loans to farmers. The Punjab delegation that met Goyal, led by state Finance Minister Manpreet Singh Badal, said arhatiyas were an integral part of the local agricultural economy, and it was a tradition to pay farmers through them.

But the central government, which sees DBT as a way to boost transparency and prevent the exploitation of farmers by middlemen, didn’t buy the argument.

“Goyal was not impressed with this logic at all and, on more than one occasion, he told us that the Government of India would in that case not pick up any grain from Punjab,” Badal told ThePrint Friday.

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The Hindu, 9 April, 2021, https://theprint.in/india/governance/why-punjab-finally-relented-on-direct-payment-for-farmers-at-2-hour-meet-with-piyush-goyal/636948/?fbclid=IwAR28_fJyhUuEeGsGR4itXedRyMtdo1fno4TjFLnZK7q8IpEzQqSvh9SkpI4


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