Agents in Punjab upset over ‘flat rate’ of commission

The commission agents (arhatiyas) in Punjab are annoyed over the flat rate provided by the Central government for purchase of wheat in the last Rabi Marketing Season (RMS), contrary to the statutory norms of 2.5% of the Minimum Support Price (MSP).

The State government has also come out in support of the commission agents and cautioned the Centre that any deviation from the existing policy could cause serious disruptions to the upcoming paddy procurement process.

“There is anger among the arhatiyas against the Central government. We want the Centre to stick with the earlier mechanism of paying 2.5% of the MSP instead of a flat rate. If our demand is not met, we will protest. We will soon hold a State-level meeting and decide the strategy,” Amritpal Singh, president of the Punjab Arhatiya Association’s Mohali unit, told The Hindu.

“Over the years the Mandi system in Punjab had worked in the interest of the farmers and the commission agents. But now the Central government is attempting to dislodge the entire system,” he added.

Chief Minister Amarinder Singh has also urged the Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan to restore the commission of the arhatiyas to the statutory norm. Captain Amarinder in a letter to Mr. Paswan stated that the flat rate commission provided for the RMS was contrary to the statutory norms and has urged the Union Minister to accordingly amend the provisional cost sheet for RMS 2020-21. “As per the cost sheet, the arhatiya commission has been allowed at a flat rate of ₹46 per quintal, which appears to be based on certain estimates of the actual expenditure incurred,” he pointed out.

“Unrest is already brewing among the arhatiyas over this issue, which, if left unresolved, has the potential of seriously disrupting the smooth procurement of paddy during the Kharif marketing season 2020-21,” the Chief Minister added.

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