Lakhowal plans to pay farmers directly
By Madhvi Sally, ET BureauLast Updated:
Oct 07, 2013,
06:14 AM IST
With paddy arrivals yet to pick up across
Punjab, the state government now plans to make
direct payments to farmers.
The
Punjab government is expecting a few progressive
farmers only to register to the market committee
for direct payments this season.
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.