FCI backtracked from making direct payment to farmers

It seems govt has once again kneeled down before the middlemens' lobby on making direct payment to paddy farmers for the upcoming crop season. In a directive issued, FCI HQs at Punjab & Haryana circle extended the proposal to next year or, even further till the order comes from the higher authorities. FCI had procured over 650 tonne from Bhatinda and Kapurthala by making direct payments to farmers before the order came. In Punjab, the FCI will be procuring over 10% of the total procurement of 13.7 million tonne this season. Similarly inHaryana, FCI will procure 5% of the 2.7 million tonne paddy, which arrives in themandis. It shows how farmers are still nowhere in front of the mighty arthiyas or commission agents. By supporting them, the state government is also against the farmer’s growth. Commission agents are a link between farmers and buyers for facilitating the auction and delivery of the produce. Despite the fact that the commission agents do not have any significant role in the procurement of those crops (wheat and paddy) in which assured marketing prevails, they get 2.5% commission from the procuring agencies. Since 2006, the Punjab State Farmers Commission has recommended that payment should be made to farmers directly via cheques. It was estimated that commission agents have earned about 6427.27 crore from 1989-90 to 2009-10 on the marketing of commodities. On an average, the commission agents earned commission amounting to306.07 crore per annum on all commodities since 1989-90.