New liberal crop procurement regime restricts arhtiyas’ role

CHANDIGARH: With change in rules following the amendments in the Agricultural Produce Market Committee (APMC) Act, farmer groups will now be able to sell their produce to the buyer of their choice. Also, this will open door to private players in the food grain procurement business in Punjab.

Under the new rules, the arhtiyas (commission agents) can pay farmers for the purchases they make only by transferring money electronically. In case an arhtiya fails to do this within a fixed time, there is provision of penalty and even attachment of property.

Secretary, agriculture, KS Pannu, said, “The system will lead to empowerment of farmers by way of direct payment and also gives him more choice of buyers. It will also cut down usurious non-institutional loan burden on the farmers,” he said.

The new rules give farmers an upper hand, minimising chances

of exploitation at the hands of arhtiyas. The commission agents, numbering about 22,000 in Punjab, have been playing a pivotal role in the food grain procurement business since the minimum support price (MSP) was introduced in early 1960s.

The amendments were effected by the government following directions from Centre’s consumer affairs ministry to credit payments directly into the farmers’ account through PFMS

and not through arhtiyas. The new rules make it mandatory to furnish details of payments on the J-form, putting an end to the benami trade. Lakhwinder Singh Gill, who is director of Centre for Development Economics and Innovation Studies at Panjab University, said : “It’s just a beginning and there should be direct payment to farmers without arhtiyas in the picture. The procurement agency should directly pay to the farmers.”