Agents to protest direct payment to punjab farmers

AHMEDABAD: Commission agents (arthiyas) are holding a protest in Punjab over direct payment to paddy farmers this season. Union minister of state for consumer affairs, food and public distribution K V Thomas has asked the state government to ensure that co-operative societies make direct payment to farmers for the crops procured.

Since the 2010-11 marketing season when the proposal was first mooted, the strong lobby of commission agents has not allowed Food Corporation of India (FCI) and other agencies to pay farmers directly. In 2011-12, FCI made direct payment to farmers through cheques before the operation was put on hold midway with an advice pending from the Ministry of Law.

"We are seeking an appointment with the Union minister for food and public distribution to tell him why this proposal will not benefit farmers," said Devidayal Goyal, president of Arthiya Association, Punjab. There are around 22,000 arthiyas present in over 145 mandis across the state who act as middlemen in money transactions between 13 lakh farmers and the government during the purchase of wheat and paddy.

Currently, payments and bonuses meant for farmers are made through commission agents based on the bill submitted to procurement agencies. Procurement agencies make payment to arthiyas within 48 hours of procurement and arthiyas pay the farmers in the next 72 hours.

The arthiyas issue cheques when payments above Rs 10,000 are made to farmers.

With the paddy procurement season to begin from October 1, the Centre's move is aimed at ensuring farmers receive the correct support price on time. The Punjab government has not amended the APMC Act to allow directly to farmers, eliminating the arthiyas.