EXPLAINER: Why farmers are at loggerheads with authorities over paddy procurement

Farmers under the banner of the Bharatiya Kisan Union (BKU) are at loggerheads with the authorities of procurement agencies, rice millers, arhtiyas and officials of the market committees over issues concerning paddy procurement, minimum support price (MSP), and alleged corruption in grain markets to adjust the arrival of paddy from UP and other states. Here is what you need to know the key questions surrounding the conflict and what it means to the farmers.

What has triggered the farmers’ protest?

Non-procurement of paddy or procurement below the MSP triggered the farmers to protest. After slapping an official in public at Kurukshetra over allegedly non-procurement of paddy, BKU president Gurnam Singh Charuni is visiting the grain markets, accusing officials, rice millers of large-scale irregularities in the procurement of paddy. Charuni alleged that paddy from UP and other states was being illegally brought into Haryana, sold at higher prices in local grain markets, and shown as local produce under MSP procurement. This practice, he claims, has the backing of certain rice millers and officials, forming a nexus that exploits the system and deprives genuine Haryana farmers of their due. He also pointed out that cuts in the name of moisture, delay in procurement and lifting, as well as poor mandi management have made it harder for the farmers to sell crops efficiently. Similar allegations are levelled by other farmer unions, including BKU (Mann), BKU (Sir Chhotu Ram), BKU (Arya) and others.

 How is paddy from Uttar Pradesh linked to the crisis?

The heart of the controversy lies in what the farmers call “imported paddy”, crops grown in Uttar Pradesh and other states, purchased there at much lower prices, and then brought across the border to Haryana’s grain markets. The farmers allege the same paddy is allegedly sold at the government’s MSP, earning traders a huge profit. To disguise the move, fake or manipulated paperwork is done. This move not only cheats the government exchequer but also delays procurement of genuine farmers and their payments.

Why are farmers checking vehicles loaded carrying paddy at Haryana-UP border?

Suspecting paddy being brought from UP and other states at cheaper prices are being sold in the grain markets of Haryana at MSP, the farmers led by the BKU are checking paddy trucks and their documents to stop the ‘illegal’ arrival from Haryana and other states. Last week, Charuni checked several vehicles and alleged scores of trucks filled with paddy from UP entered Haryana daily. The farmers regularly visit Manglora and Shergarh Tapu nakas to check the arrival from UP.

What is happening inside grain markets?

Charuni on Thursday visited Karnal and Taraori grain market and alleged that there was chaos there as heaps of paddy was lying unsold, farmers were waiting for days under the open sky and a slow or halted lifting process. The farmers complain that the market committees are not functioning efficiently. Tractors-trailers loaded with paddy are parked for hours outside the grain markets. The slow pace of procurement adds to moisture loss, which then becomes another excuse for deductions in payment.

What is the alleged scam involving MSP payments?

In one of the most serious claims, Charuni accused officials of manipulating the MSP payment system through a “kachi parchi” (raw slip) practice. When the farmers sell their crop, they receive a raw slip showing a price below MSP. However, the government system transfers the payment at full MSP to their bank accounts. Later, middlemen or agents allegedly ask the farmers to return the difference between the slip amount and the transferred amount, effectively siphoning off part of the farmer’s payment.

Why are the farmers demanding an investigation now?

For the past couple of years, the farmers have been raising alarms about irregularities in paddy procurement as paddy from other states are adjusted by issuing fake gate passes. The situation worsened this procurement season with unusual spikes in mandi arrivals despite late harvesting and low yields in Karnal’s grain markets. The farmers claim the high arrival is a result of the influx of paddy from outside states. The farmers are demanding a fair and independent investigation into the alleged nexus between rice millers, officials and arhtiyas. They want immediate suspension and inquiry against those found involved in the manipulation of MSP slips and illegal paddy inflow. They also urge the government to strengthen border checks, deploy independent audit teams at mandis and ensure real-time digital transparency in procurement records.

What are the authorities saying?

Officials of the procurement agencies and market committees have denied allegations of corruption, claiming that all procurement follows the laid-down process and digital records. They also assert that checking systems are in place at borders and that no illegal movement of paddy has been officially detected.

How, as per the farmers, does this alleged nexus affect them?

The consequences are severe and immediate. The illegal entry of outside paddy floods the market, causing shortage of space and delaying procurement for genuine local farmers. As a result, the farmers waiting for days in grain markets with their produce and are forced to sell the produce at throwaway prices. Moisture cuts are imposed which also reduces earnings. As per the farmers, they are often forced to sell below the MSP out of desperation.

What is MSP and why is it so important to the farmers?

The MSP is a government-fixed price at which crops are purchased from the farmers. It acts as a safety net, ensuring that the farmers do not have to sell their produce at a loss when the market prices fall. The farmer unions are demanding a legal guarantee on MSP, which would make it mandatory for the traders and government agencies to buy at or above the MSP rates. As per the farmers, without a legal framework, they fear that the private traders can exploit them, especially when procurement by the government agencies is delayed or limited.

What could happen next?

Different farmer unions have already warned that if the government fails to act, they would launch a statewide agitation. The union may organise sit-ins, marches, and blockades to press for their demands.