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Explainer: Why Haryana's wheat handling policy faced opposition

Standoff resolved following intervention by Haryana CM Nayab Saini; government amends several provisions

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A standoff between mandi transport contractors (MTC), mandi labour contractors (MLC), and the government over the tender policy for wheat handling and lifting in 2025-26 has been resolved following intervention by Haryana Chief Minister Nayab Singh Saini.

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Contractors had initially opposed the policy, refusing to register for the wheat handling process. However, after the government amended several provisions of the policy, contractors have now agreed to participate in the registration process for wheat procurement, set to begin on April 1.

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Why did contractors initially refuse to register?

Transport and labour contractors were initially enraged by the 2025-26 tender policy and refused to engage in the registration process. Their opposition stemmed from changes made by the state government in February, which transport contractors strongly criticised. Their concerns went unresolved initially, leading them to approach the Chief Minister, who directed the authorities to address their issues. Subsequently, the Food, Civil Supplies, and Consumer Affairs Department accepted most of their demands, allowing the registration process to move forward.

What changes were made to the vehicle requirements and security deposit?

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Under the previous policy, contractors were required to own 30% of the trucks necessary for wheat lifting at each grain market. Failure to meet this requirement resulted in a security deposit for each missing vehicle. The original February 2025 policy increased the deposit to Rs 1.25 lakh per short vehicle, with Rs 75,000 refundable and Rs 50,000 non-refundable. In response to contractor protests, the security deposit was reduced to Rs 1 lakh, with Rs 85,000 refundable and Rs 15,000 non-refundable.

Contractors further requested a reduction in the security deposit, as they already deposit 10% of the contract value as security. The government subsequently agreed to make the deposit fully refundable at Rs 60,000 per short vehicle.

What issues arose with the lifting timelines and penalties?

The previous policy required wheat to be lifted within 48 hours, with a Rs 500 per day penalty for delays. The February 2025 policy raised the penalty to Rs 5,000 per day, which contractors deemed excessive. After negotiations, the penalty was reduced to Rs 1,000 per day and then further lowered to Rs 500 per day. Additionally, the lifting deadline was extended from 48 to 72 hours.

Why did contractors object to the negotiation process?

Contractors opposed the new requirement for negotiations with all bidders, which they believed turned the process into a competitive bidding exercise. They demanded that negotiations be limited to the lowest bidder (L-1), as was the previous practice. However, no changes were made to this aspect of the policy.

Why contractors blamed commission agents for disrupting system?

Contractors accused arhtiyas (commission agents) in certain mandis of manipulating the system by enticing truck drivers to lift food grains. Despite the contractors providing enough vehicles, delays occur due to the interference of the arhtiyas. However, the Food, Civil Supplies, and Consumer Affairs Department has not taken any action, as it is not considered a policy matter.

What other amendments were made to the policy?

Contractors raised concerns about food grain shortages due to moisture. The revised policy now stipulates that if a shortage is found after the first weighment at the mandi or weighbridge, the arhtiya (commission agent) will bear the loss. If the shortage is identified after the second weighment at the storage point, the transporter will be responsible for the loss.

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