Punjab provides in, will implement DBT for farmers

Two days earlier than it begins the mega train of procuring practically 130 lakh tonnes of wheat crop, the Punjab authorities Thursday agreed to implement the direct financial institution switch of MSP to farmers, bypassing the arhtiyas, from the present season saying it was left with “no choice” however to implement the scheme as Centre mentioned it is not going to raise the grains if the brand new system was not adopted.
The transfer is certain to create ripples among the many farmers, the arhtiyas and the political class within the agrarian state, the place the fee brokers have historically been finishing up the procurement for the federal government companies. Chief Minister Capt Amarinder Singh had earlier written to Centre, urging it to let Punjab keep it up with the outdated system of procurement and fee by way of arhtiyas. In a gathering with the fee brokers, he had refused to implement the brand new system that seeks to bypass the arhtiyas.
However, a five-member Punjab delegation that met Union Minister Piyush Goyal needed to return empty handed Thursday with the Centre refusing to budge on the difficulty of direct profit switch (DBT) to farmers.
State Finance Minister Manpreet Singh Badal, who led the delegation, speaking to The Indian Express mentioned, “He told us to go back and follow the system. He told us either we follow the new system or they would not procure our crop. He said they will not budge”.
Besides Badal, Punjab Food Minister Bharat Bhushan Ashu, PWD Minister Vijay Inder Singla and Mandi Board Chairman Laal Singh attended the assembly. State Food Secretary KAP Sinha and senior officers from Union Food and Agriculture Ministries had been additionally current.
Punjab procures wheat and paddy on the MSP for central pool underneath the National Food Security Act (NFSA). Currently, the fee to farmers in Punjab is finished by way of arthiyas.
Manpreet mentioned that the central authorities argued that the meals inventory procured belongs to it and the state authorities is simply an agent and may make fee on to farmers.
“We told him that we have our own APMC Act in place that provides for payment through the arhtiyas. He told us to amend the Act if we want our grains to be procured. He said they are the owners of the grains and we are just the agents and whenever an owner tells the agent to follow a system, it is to be done,” Manpreet mentioned.
Ashu mentioned that they instructed the Union Minister that the arhtiyas is not going to raise the grains if the cash is given on to the farmers. “To this, he said that if arhtiyas do not lift the grains, then the agencies would lift it directly.”
Manpreet mentioned the state authorities has “no other choice” however to implement the DBT for farmers from the present season itself and a brand new mechanism will probably be labored out. “The Government of India (GoI) had asked us to implement the DBT for farmers. We had sought more time….But the GoI dismissed our demand. We tried a lot but they did not listen,” he mentioned.
“It is a question of Rs 28,000 crore. We will hold a meeting with arhtiyas and work out how it is to be done,” he added.
The Punjab CM has known as a gathering with ‘arthiyas’ on Friday to debate a couple of new mechanism forward of wheat procurement that may start from April 10. “We will develop a mechanism that will give some protection to arthiyas,” Ashu mentioned.
News company PTI quoted Union Food Secretary Sudhanshu Pandey: “Punjab ministers in the meeting agreed to implement the DBT for farmers from this season. Currently, MSP payment is routed through arthiyas. We are asking them to pay directly to farmers.”
State governments had been requested to implement DBT to farmers in 2018. By 2019, nearly all states began implementing it apart from Punjab, he mentioned.
Manpreet mentioned that Centre has agreed to defer implementation of land data integration (required to trace land possession of farmers throughout procurement) by six months. “They deferred the requirement for one more procurement season,” mentioned Manpreet.
On the difficulty of pending rural growth fund (RDF), the Centre instructed the Punjab delegation that they weren’t happy with the state’s reply. “We told him that this is our statutory fund and we have every record of how this money is spent and we are willing for an audit. He told us to send a detailed reply following which they will release our remaining 2 per cent of the fund,” mentioned Manpreet.
The Centre had launched just one per cent of RDF to state for the paddy procurement season whereas the state prices RDF at 3 per cent of the MSP. They Centre had sought a file on how the RDF was being spent.
On the difficulty of transferring the inventory from granaries within the state, Ashu mentioned, “He told us they have devised a new system under which the grains would be lifted and sent directly to the states which were to be supplied with the grains”.
Manpreet mentioned that the Centre had additionally agreed to pay Rs 1600 crore recoverable to Punjab, “They said they will clear this amount soon.”
The minister additionally knowledgeable the Centre that the state will implement the distribution of fortified rice through Public Distribution System and welfare schemes like Midday Meal Scheme.