Commission agents rubbish PAU report

“There are 15 lakh farmers in Punjab’s over 12,000 villages. If a complete survey of all the farmers is done and even 50 per cent of them feel that the commission agent (arhtiya) system should go,we will accept it. Nearly 99 per cent farmers still want us and if the system goes,the farmers of Punjab will be as weak as that of Uttar Pradesh,Rajasthan and Andhra where they are at the mercy of private buyers and state agencies,” said federation president Vijay Kalra.

The study — Commission agent system in Punjab agriculture — conducted by Dr Sukhpal Singh and Dr Tejinder K Dhaliwal has called for an urgent need to regulate the commission agent system in the state claiming that state farmers are often exploited by arhtiyas who charge exorbitant rates of interest on credit,and supply poor quality farm inputs through malpractices in weighing and prices of the produce. However,Kalra claimed that they provide credit to farmers at ‘genuine’ rates of interest — maximum of 18 per cent — and on several occasions credit is given without charging any interest. “The state procurement agencies do not pay us on time,but we do not delay our payment to farmers,” he said.

The association also termed the initiative of Punjab and Civil Supply Department of ensuring faster payments to arhtiyas through online credit as a failure. “It has only been started by one state agency,Pungrain,as of now. However,it has not been sucessful as some commission agents received wrong cheques,” Kalra said.

Meanwhile,Punjab Mandi Board,which held a meeting with the federation today,said payments to farmers during the coming paddy procurement season will be made within the stipulated time of seven days. “Both the board and our farmers’ union,BKU,are in favour of direct payment to farmers. As of now,payments are being made,according to last year’s notification,through arhtiyas but we are waiting for the High Court’s decision on the case,which is listed for hearing on September 13,” Mandi Board chairman Ajmer Singh Lakhowal said.