Paddy lifted, but growers yet to be paid

Varinder Singh

Tribune News Service

Chandigarh, December 1

Thousands of farmers and commission agents in the state have been left in the lurch as they are awaiting their payments worth Rs 6,000-7,000 crore for their paddy crop sold in various markets of Punjab. 

The paddy procurement process was relatively going on smoothly in Punjab till the last month, but the arrival of more than expected paddy crop in the markets was said to have created a crisis for the state government, farmers and commission agents as well.  Officials of the Food and Civil Supplies Department said the payment of paddy dues to farmers was stalled as the Centre had fixed paddy cash-credit limit for the state at Rs 18,000 crore for October. 

The Centre had duly accorded this amount to the state. But Punjab mandis witnessed slow arrivals in October, therefore, only Rs 12,000 crore of the Rs 18,000 crore limit could be utilised for payment purpose and Rs 6,000 crore got lapsed. The state again sought the remaining Rs 6,000 crore plus another Rs 6,000 crore for November, but the Centre is said to have released only Rs 6,000 crore for paddy procurement even as the state mandis witnessed a sudden spurt in the arrival of about 12 lakh MT more paddy this year as compared to the last year mainly due to favourable weather conditions. 

“The state has purchased about 1.35 lakh MT of paddy till December 1, which was roughly about 12 lakh MT more than the paddy purchased till the corresponding date of the last year,” Food and Civil Supplies sources said.

Both state and the Centre were not ready to deal with the huge difference in quantum of paddy arrivals in the state mandis leading to payment crisis for farmers and commission agents as well.

The Centre has not extended Punjab’s paddy cash-credit limit in accordance with the enhanced arrivals — a factor which was said to have created quagmire for farmers and commission agents and has led to delay in their payments. 

The Punjab Food and Civil Supplies Department had timely sounded the Centre while seeking enhancement of the cash credit limit in view of more paddy arrivals, but the Centre has virtually “cold-shouldered” Punjab by shooting off a letter seeking complete details of the utilisation of Rs 18,000 crore limit, which led to the delay in payments.

Ravinder Singh Cheema, vice-president of the Punjab Mandi Board and president of the Punjab Arhtiya Association, said the association would knock the doors of the Punjab and Haryana High Court against the “increased formalities” by the Central agencies in respect to paddy payments. “We are going to make the Centre, the RBI and the FCI a party in the case,” he said.  Senior farmer leader Balbir Singh Rajewal has sought early release of paddy growers’ dues saying a large number of farmers were facing cash crunch caused by non-payment for their paddy crop by the state government.

Vijay Kalra, president of the Federation of Arhtiya Association, Punjab, threatened that commission agents would be forced to launch an agitation if the state failed to release their payments by December 5. 

Cheema said he had brought the issue of non-payment to farmers in the notice of Chief Minister Parkash Singh Badal.  “He assured that the issue would be solved within the next three days,” said Cheema.