‘No selection,’ says Punjab govt, to implement direct financial institution switch of MSP to farmers


Picture Supply : PTI

Punjab Finance Minister Manpreet Singh Badal.

Punjab Finance Minister Manpreet Singh Badal on Thursday mentioned the state authorities has “no selection” however to implement the Centre’s mandated instruction on direct financial institution switch of MSP to farmers from the present season.

Badal, after a prolonged dialogue with Union Meals Minister Piyush Goyal on this difficulty, mentioned the Centre rejected the state authorities’s demand to present extra time to implement direct financial institution switch (DBT) of minimal assist worth (MSP) to farmers.

The Punjab Chief Minister has known as a gathering with ‘arthiyas’ (fee brokers) on Friday to debate a few new mechanism forward of wheat procurement that may start from April 10.

Punjab procures wheat and rice at MSP on behalf of the central authorities below the Nationwide Meals Safety Act (NFSA).

At the moment, MSP to farmers in Punjab is paid by arthiyas in contrast to on to farmers’ checking account in different states.

“The Authorities of India (GoI) had requested us to implement the DBT for farmers. We had sought extra time as a result of in Punjab there’s a conventional arthiyas system….. However the GoI dismissed our demand. We tried loads however they didn’t pay attention,” Badal informed reporters after 2.30 hours of assembly.

The state authorities has “no different selection” however to implement the DBT for farmers from the present season itself and a brand new mechanism shall be labored out, he mentioned.

Citing causes for rejecting Punjab’s demand, Badal mentioned the central authorities was arguing that the meals inventory procured belongs to it and the state authorities is simply an agent and may make cost on to farmers.

Arthiyas a conventional system: Punjab govt argues with Centre

“However arthiyas are conventional system and one wants to grasp this. It’s troublesome to unravel this technique….. We’ll come out with a mechanism,” he added.

Apart from Badal, Punjab Meals Minister Bharat Bhushan Ashu, PWD Minister Vijay Inder Singla and Mandi Board Chairman S Laal Sing had been current within the assembly.


Senior officers from Union Meals and Agriculture Ministries had been additionally current.

The Punjab Meals Minister mentioned, “Tomorrow, we’ll meet arthiyas and take them into the loop. We’ll develop a mechanism that may give some safety to arthiyas. The CM has saved a gathering with arthiyas tomorrow.”

From April 10, wheat procurement will begin and each grain shall be bought, he mentioned, and added, “The cost will go immediately into the (financial institution) account of farmers.”

Talking to PTI, Union Meals Secretary Sudhanshu Pandey mentioned, “Punjab ministers within the assembly agreed to implement the DBT for farmers from this season. At the moment, MSP cost is routed by arthiyas. We’re asking them to pay on to farmers.”

State governments had been requested to implement DBT to farmers in 2018. By 2019, virtually all states began implementing it aside from Punjab, he mentioned.

Amongst different points, the Punjab Finance Minister mentioned the Centre has agreed to defer implementation of land information integration (required to trace land possession of farmers throughout procurement) by six months.

‘GOI not pleased with our rationalization…’

On launch of pending rural improvement Fund (RDF) to state authorities, the minister mentioned about three per cent RDF is mounted for Punjab. The state is getting just one per cent and relaxation two per cent is pending.

“GoI isn’t pleased with the justification given by us. They assured that GoI will launch arrear of two per cent payment if the state authorities provides a reputable justification on the place the funds have been spent,” he mentioned.

The Punjab Finance Minister within the assembly raised concern about piling inventory of foodgrains within the state and requested for an early liquidation so that there’s area for the brand new crop.

“GoI has given assurance that it’ll take foodgrains inventory out of Punjab,” he mentioned and added the Centre has additionally assured it is going to launch the dues value Rs 15,000 crore earliest to the state.

The minister additionally knowledgeable the Centre that the state will implement the distribution of fortified rice by way of Public Distribution System and welfare schemes like Noon Meal Scheme.

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