No further ‘exemption’, Centre tells Punjab, Haryana to ensure online payment to farmers

Vibha Sharma

Tribune News Service

New Delhi, February 19

The Centre has asked Punjab and Haryana to ensure online payment to farmers from the coming procurement season and stated that “no further relaxation on this account will be accorded”.

Both the state governments have been seeking time for implementation of direct online payment initiative.

“The government is regularly pursuing with state governments of Punjab and Haryana for ensuring direct online payment into farmers’ accounts since 2015-16.

“However, both the state governments have been routinely approaching the Centre for granting exemption/seeking time for implementation of direct online payment initiative,” said the Ministry of Food and Public Distribution and Consumer Affairs.

“The Centre has therefore, directed the State Governments of Punjab and Haryana to ensure online payment to farmers through e-mode from upcoming season and that no further relaxation on this account will be accorded,” said the Ministry.

With the decision coming amid the ongoing farmer agitation against the three farm laws, officials said the e-mode predates the legislations and that “the government has no intention to eliminate arthiyas in Punjab and Haryana and no directions have been issued to eliminate arthiyas from the mandi system”.

The e-mode of payment will ensure that all value chain participants, including farmers, arhityas, mandis, etc, get their payments directly instead of getting paid through another value chain participant like arhitya paying the farmer. This ensures transparency and benefits all. This is not a replacement of the current APMC system, it said.

According to officials, “In Punjab, MSP was paid to the farmers through arthiyas, and in Haryana, FCI made the payment directly to farmer’s bank account through online mode, whereas state agencies made payment of MSP to the farmers partly through arthiya and partly directly to farmer’s account through online mode as per the option given by the farmers in e-Kharid portal.”

“Digital mode of financial benefit transfers or payments by government agencies to beneficiaries has been highly successful and appreciated tool of transparency which has been instrumental in eliminating leakages in delivery of benefits. E-mode of payment has already been adopted partially by Haryana and Punjab. For example, a part of payment for this paddy procurement was done through e-mode,” it said

The Centre has released a record Rs 1,25,217.62 crore so far this year and Rs 2,97,196.52 crore more will be released during this financial year towards food subsidy of which Rs 1,16,653.96 crore has been reflected in the PFMS towards Punjab. In respect of Haryana, the sum amounts to approximately Rs 24,841.56.

This apart, procurement through bio-authentication of farmers has also been introduced in Uttar Pradesh, the Ministry said, adding that Odisha, Chhattisgarh, and Madhya Pradesh are also keen to adopt bio-authenticated procurement which will ensure transparency and help in tracking the end-use beneficiary.