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Mandi contractors end protest after govt amends wheat transport policy

Security deposit cut, wheat lifting timeline extended to 72 hours
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Over 120 lakh metric tonne wheat is expected to arrive in grain markets next month after the procurement season kicks in.
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Following opposition from mandi transport contractors (MTC) and mandi labour contractors (MLC) over the MTC-MLC tender policy for 2025-26, the Food, Civil Supplies and Consumer Affairs Department has amended key conditions, offering relief to contractors. With these changes, contractors have now joined the registration process for wheat handling and transportation.

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Revised policy

- As per the revised policy, contractors failing to meet the requirement of owning at least 30% of the trucks for wheat lifting will now have to deposit an additional refundable security of Rs 60,000 per short truck, down from the initially proposed Rs 1 lakh

- The department has also extended the wheat lifting period from 48 hours to 72 hours, though the penalty for delay remains unchanged at Rs 500 per day

As per the revised policy, contractors failing to meet the requirement of owning at least 30% of the trucks for wheat lifting will now have to deposit an additional refundable security of Rs 60,000 per short truck, down from the initially proposed Rs 1 lakh. Of this, Rs 85,000 will be refundable, and Rs 15,000 non-refundable. The department has also extended the wheat lifting period from 48 hours to 72 hours, though the penalty for delay remains unchanged at Rs 500 per day.

Authorities have maintained that every contractor must own at least 30% of the trucks. If they do not, they must submit a security deposit. In 2024-25, this deposit was fully refundable at Rs 50,000 per truck. However, when the MTC-MLC tender policy for 2025-26 was drafted in February, the deposit per short truck was initially set at Rs 1.25 lakh, with Rs 75,000 refundable and Rs 50,000 non-refundable. After objections, it was revised to Rs 1 lakh per truck, but contractors still found this unsuitable and refused to register.

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Last week, contractors met Chief Minister Nayab Singh Saini at his residence in Chandigarh and submitted a memorandum pressing their demands. Following the CM’s directions, they held discussions with senior department officials to highlight their concerns.

"Most of our demands have been accepted, so we have joined the registration process for the handling and lifting of wheat for the 2025-26 crop season," said Ashok Khurana, a transport contractor.

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Anil Kumar, District Food and Supplies Controller (DFSC), confirmed that after the amendments, contractors have resumed registration for wheat lifting and handling. Wheat procurement is set to begin on April 1 and all necessary arrangements have been made.

"After amending some conditions, transport and labour contractors have joined the registration process. We will ensure smooth procurement and lifting of the wheat crop," said the DFSC.

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