Even after the Punjab administration’s early unwillingness to accept the Direct Benefit Transfer (DBT) method for payment of the Minimum Support Price (MSP), the process is believed to be paying off handsomely for lakhs of farmers in the area.
The Centre was capable of transferring Rs 13.71 crore in Punjab over the first few days of online transfer of the MSP for wheat acquired by the Food Corporation of India (FCI), benefiting approximately 1.6 lakh farmers. The Centre had been working to develop the DBT process since 2015-2016, but only this year was the system put in place, even after fierce resistance from arhtiyas (commission agents) and the Punjab government. The Punjab government has repeatedly supported the traditional arhtiya-based payment platform for farmers. Well before the procurement process began, the Punjab government sought exemption from the Centre, which was denied.
The procurement process in Punjab began on April 10, although it began on April 1 in Haryana. Haryana takes the top spot of 11 states and two union territories where wheat is procured at MSP (Rs 1,975 per quintal rate this year).
Approximately 81.64 lakh tonnes of wheat have already been procured, compared to the national target of 427.36 lakh tonnes. The FCI will purchase up to 135 lakh tonnes from Madhya Pradesh and 130 lakh tonnes from Punjab. According to FCI data, the Central government agencies purchased 18.24 lakh tonnes of wheat from Punjab and 36.30 lakh tonnes from Haryana during prevailing rabi season, which ended on April 15.
Union Food Minister Piyush Goyal decided to share more information on Twitter, writing, “One Nation, One MSP, One DBT, Punjab’s farmer is the happiest he’s ever been in his 15 years as a farmer after getting DBT as MSP for his crop Modi govt. is working hard to ensure happiness of crores of farmers across Punjab & India.” (SIC)”
He goes on to explain that the DBT has benefitted immensely at least 1,64,455 farmers in Punjab.
That being said, the Punjab government did not want to antagonize the arhtiyas during an election year. The Punjab government has altered the payment software, allowing arhtiyas to keep track of the payments made to farmers. But eventually the money will be transferred directly to the farmer account.
