Even as wheat has started arriving in some grain markets despite last week’s inclement weather, a parallel crisis is brewing in mandis across Punjab.
Commission agents (arhtiyas) have intensified their demand for restoration of full 2.5 per cent commission — a rate they say was effectively diluted due to the insertion of the words “up to 2.5%” in the 2020 notification.
Arhtiyas argue that by introducing the word “up to”, the notification had fundamentally altered the nature of their commission structure. Prior to 2020, the Punjab Agricultural Produce Markets Act provided for a fixed commission of 2.5% on procurement.
“However, following the January 15, 2020, amendment by the Punjab government on the behest of a senior officer in state procurement agency (Pungrain), an amendment was made where the words ‘up to 2.5%’ were added. Following this, a notification by the Centre was issued in April 2020, and the wording was changed to ‘up to 2.5%’, giving authorities the discretion to pay any amount below the ceiling — something that has resulted in a fixed per quintal payment of around Rs 46 till last year,” said Ravinder Singh Cheema, president of the Punjab Arhtiya Association, adding that this year, Rs 4.75 has been increased, which comes to Rs 50.75. However, this is still less than 2% commission instead of a percentage-based commission, he said.
Arhtiyas say this shift has significantly impacted their earnings with rising inflation and increased operational costs. “When MSP is revised every year and statutory levies like Market Development Fee (MDF) and Rural Development Fund (RDF) are still calculated as a percentage, why has our commission been capped and converted into a fixed amount?” asked Prem Goel, president of the Arhtiyas Association Punjab.
They said that the removal of the percentage-based system has created an imbalance, particularly as procurement volumes remain high and their role in facilitating government purchases of wheat and paddy continues to be critical. According to them, the earlier system ensured that their income remained proportionate to the scale of procurement, whereas the current fixed structure does not account for inflation or rising costs.
The issue has also taken a legal turn. Goel added that whenever they try to challenge the matter in court, the interpretation of the phrase “up to 2.5%” works against them, as it legally permits payment at lower rates. “This single phrase has weakened our case. The court reads it as a ceiling, not a guarantee,” said Vijay Kalra, president of the Federation of Arhtiya Association of Punjab.
Adding to their grievances, commission agents allege administrative lapses and internal resistance in addressing the issue. They claim that despite assurances from a group of ministers to remove the “up to” clause and support their case legally, the amendment has not been implemented. Some have specifically accused a senior official in a state procurement agency of delaying the process and “misleading” higher authorities, thereby preventing corrective action.
Cheema added that the Punjab government should take up the matter strongly with the Centre, since procurement payments are governed by central notifications.
The agitation has already spilled onto the streets. Arhtiyas had organized a major protest on March 16 and have submitted multiple representations to the government. Kalra said that if their demand is not accepted, the agitation may be intensified in the coming days.
The timing of the dispute is crucial. With wheat arrivals increasing across mandis, any disruption in procurement operations could have wider implications for farmers, traders, and the state’s overall grain management system. “We are handling massive volumes of wheat and paddy every season, yet our commission is being squeezed. It feels like stepmotherly treatment,” added Goel.
“As the procurement season progresses, the standoff over the “up to 2.5%” clause is likely to remain a flashpoint. Unless a policy-level intervention is made to clarify or amend the wording, the issue could continue to trigger legal battles and on-ground protests, potentially affecting the smooth functioning of Punjab’s vital mandi system,” he said.
When asked Food, Civil Supplies and Consumer Affairs Minister Lal Chand Kattaruchak said that CM Bhagwant Mann had raised the issue of increasing the commission of arhtiyas with Union Home Minister Amit Shah, following which an increase of Rs 4.75 was granted.
He appealed to the arhtiyas to participate in the procurement process so that farmers do not face any inconvenience. About Arhtiyas demand of 2.5 per cent commission, he said that they have given the representation and the matter was raised with the centre government.
Punjab arhtiyas have intensified protests against the ‘up to 2.5%’ commission clause, demanding restoration of a fixed rate ahead of peak wheat procurement. (File Photo) 
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