FCI to make direct payment to farmers in paddy lifting season

"Farmers will be paid directly by FCI for their produce in Punjab which it will lift from farmers in the ensuing paddy lifting season," the official told PTI. "The payment of Minimum Support Price (MSP) or bonus declared by the Centre on the paddy crop will be made through e-payment mode or online to farmers. If farmers do not have any bank account to avail e-payment facility, then FCI will issue account payee cheque in the name of farmer for disbursing the payment," he said.

The new decision will also be applicable in several states including Haryana, Uttarakhand, Jammu and Kashmir, Uttar Pradesh and northeast, he said. Under the current payment system in Punjab, FCI issues cheque to commission agents better known as 'Arthiyas' and thereafter the commission agent make payment to farmers in return of crop purchase.

However, the new decision of FCI will be applicable only on crop procurement made by it not on lifting made by state-owned procurement agencies, he clarified. FCI is in the process of getting details of farmers from the state authorities to identify them for making payment.

"The modalities are being worked out and we have also asked the authorities to provide us the details of farmers in order to implement the new decision," he said. FCI would also hold a meeting and seminars with state authorities and commission agents to apprise them of the new guidelines, applicable from coming kharif marketing season.

FCI is eyeing to lift 13.70 lakh tonne of paddy from Punjab, 10 per cent of total procurement from the state, in coming paddy lifting season, which either starts end of September or October 1.

Making direct payment to farmers has been a contentious issue in the state, with farmers’ organisations considering the current mode of payment system as exploitation of farmers by the commission agents.

Even a latest study conducted by the Punjab Agricultural University (PAU) has underscored the need for changing the current payment system by paying directly to farmers through account payee cheque for crop lifting.

The study has highlighted commission agents charge exorbitant rate of interest on credit from farmers and indulged in malpractices in weighing and prices of the produce. It said that commission agents earned about Rs. 6,427.27 crore during 1989-90 to 2009-10 on the marketing of all commodities in the state.

SAD-BJP led state government had even decided to make payment to farmers routing through commission agents by cheque in September last year but this move did not go down well with farmers’ bodies. They challenged this move in Punjab and Haryana High Court, seeking direct payment to farmers.