Punjab says no: Farmers won’t be paid directly

Feb 23, 2012 |

Age Correspondent

Chandigarh

Punjab has declined Union government’s directive to make direct payment to farmers for food grains procured for the Central pool.

The state government has made it clear to the Centre that it would not be possible to make direct payment to farmers for the procurement of wheat at least in the present rabi (Wheat) season beginning in the month of April.
The state has preferred to retain the system of making payments through Arhtiyas (Commission Agents). Punjab has apprised the Union government about its position on the direct payment issue. The Centre government is keen on direct payment to farmers in lieu of procurement of their grains for the central pool, so as to reduce the role of commission agents.
However, the Punjab government has made it very clear that they are not in a position to so this season. The state government is saying that a mechanism has to be built for the direct payments to the farmers. Lot of staff would be required to prepare bills of the grains procured and then to process it.
As per an estimate more then 60 lakh cheques have to be issued during the procurements to the farmers.
Meanwhile, commission agents and some of the farmer organisations are also at loggerheads on the issue.
While farmers are asking for a direct payment, commission agents are opposed to it.

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