Punjab: Farmers Stare at Dry Festival Season, Launch Stir Over ‘Callous’ Paddy Procurement

New Delhi: Samyukta Kisan Morcha, a collective of farmers organisations, has called for blocking of highways and main roads in Punjab on October 25 after lifting of paddy from Agriculture Produce Marketing Committee markets remained tardy. The farmers body maintained that the slow procurement and lifting of paddy had made the festive season dry for farmers after the wait for payments had prolonged.

The state is expected to produce 186 lakh tonnes of paddy and after milling it is expected to procure 125 lakh tonnes of rice. The crisis over lifting began after warehouse and rice millers accused the Food Corporation of India (FCI) of not making enough arrangements through Indian Railways to transport the produce to different warehouses in the country. 

The situation further worsened after arhtiyas (commission agents) and rice millers began strikes over their demands. While the arhtiyas demanded an increase in the commission rates from Rs 46 per quintal to Rs 53 per quintal equivalent to 2.5% of minimum support price, the rice millers are concerned over shelling of PR 126 variety of paddy which yields less rice than traditional varieties like PR 106 and Super Basmati. 

Raminder Singh Patiala, who works with Kirti Kisan Union, told NewsClick that the farmers would block the main highway and roads adjacent to the APMC markets from 11 p.m to 3 p.m on Friday to express their anguish over the issue. Similarly, District Commissioner offices will be gheraoed from 11 a.m to 3 p.m on October 29.

“If the ruling Aam Aadmi Party (AAP) MLAs and bureaucrats visit the mandis, they too will witness the same treatment. We have also decided to gherao the Union Minister Ravneet Singh Bittu wherever he goes in the state,” he said.

Patiala said, “Chief Minister Bhagwant Singh Mann with his team of bureaucrats met us on October 19 and we were assured that the situation would return to normalcy in two days. The situation has slightly improved. Yet, it has not taken the speed it should take. Punjab is expected to produce 186 lakh tonnes of paddy. It is not a small amount. The rice millers are also having their standoff with government over their terms of contract. There are 5,600 rice millers in state of which only 2,500 have signed their agreements. So, it will take time now. We are also awaiting the result of the meeting between rice millers and the Union agriculture minister.”

He accused rice millers of “prolonging the crisis because they will benefit from both ends. They will get a higher price for shelling. Now, paddy is losing its moisture. So, it will weigh less and farmers would get even less money. The usual benchmark for procurement remains around 17% but we are hearing reports of paddy with 15% moisture. It’s a sad situation for us.” 

When asked if FCI and the state government could have handled the issue well, Patiala accused the Centre of “deliberately prolonging the crisis through FCI because it can pinpoint APMC system as defunct and ineffective.”

“Similarly, BJP is of the opinion that anguish among farmers would create some political space for it. AAP and Bhagwant Mann could have been more proactive in raising the issue of lifting the stock. Now, it will affect the rural economy. Had farmers got the money, there would have been a circulation in markets. So far, Rs 3,500 crore have been received by the farmers whereas the original money to be received should be around Rs 45,000 crore. This is why you do not see a jubilation in the markets.”

Baljeet Singh Grewal, secretary, All India Kisan Sabha, Punjab, told NewsClick over the phone that the entire system of procurement, from selling of paddy to the transportation to FCI godowns, had failed.

“The farmers are not harvesting their crop as they are worried about storage space. Rice millers and arhtiyas are asking FCI officials to vacate their space when they are already complaining about dearth of space. Farmers usually think about payments but this is not our concern at the moment. We are clueless if we will be able to sell the crops at MSP or not,” he said.

Grewal added that the whole rural economy of Punjab was dependent on credit.

“Farmers buy pesticide, herbicide, seeds and fertilisers on credit through cooperative societies. This also applies to arhtiyas. Once payments are received, all dues are cleared. Then, they take loans for the next crop. Families look forward to marriages and other important things. The arhtiyas and rice shellers are with farmers on procurement through APMC model or else big private players would have completely looted the state,” he added.

The AIKS leader also lambasted the Punjab government over its “callous attitude” in handling APMC markets and lifting paddy.

 “It is clear from the current episode that Centre is treating farmers like its enemies. They are hell bent on destroying this well-established system. However, it is the Mann government which too has failed miserably in pushing FCI to clear the stock from mandis and rice shellers. Our usual experience was such that markets would be cleared and sanitised by municipalities and new electricity connections installed fifteen days before the stipulated period. Panchayat elections have also affected the preparations. Now, our crop is losing moisture quickly and may perish if not harvested in time. The grains falling on ground cannot be collected. Ultimately, it is our loss,” he said.

SKM accused the Centre and its policies for the impasse. In a press statement, it said, “Finance Minister Niramala Sitharaman has curtailed the food and fertiliser subsidy in the Union Budget 2022-23 and 2023-24 and continuing the same in 2024-25 also to a whopping accumulated sum of Rs. 67552 Cr in food subsidy and Rs. 87339 Cr in Fertiliser subsidy. In the Union Budget 2022-23 (actuals) the food subsidy was Rs. 272802 Cr. In the Budget 2023-24 (Revised) the expenditure made was only 2, 12,332 Cr means less by Rs. 60, 470 Cr. In the 2024-25 Budget the subsidy estimated is Rs. 2, 05,250 Cr., means further reduced by Rs.7082 Cr.”

The SKM said BJP-ruled States were “systematically implementing Direct Benefit Transfer – DBT scheme of cash transfer to bank accounts of the beneficiaries under Public Distribution Scheme -PDS- by changing the Rules of Food Security Act 2013. For example in Maharashtra, the State Government has converted 32 lakh ration cards in cash transfer and stopped lifting rice and grains from Food Corporation of India-FCI.  In Karnataka, despite severe drought, the Union Government did not provide rice though the State Government demanded food grain.”  

The farmers’ collective also accused NAFED and other public sector agencies of deliberately keeping their procurement process out of APMC system and pushing a chain of private players belonging to the corporate sector.

“Prime Minister Modi has lifted the ban on export of non-basmati rice in the interests of the corporate houses. All these measures are part of corporatizing the food sector and will have larger consequences on the food security. The Union Government has dismantled the Central Warehousing Corporation –CWC- that resulted in large scale reduction in storage facilities in the public sector,” the SKM said.