Food Corporation of India (FCI) and commission agents (arthiyas) have locked horns over direct payment to farmers in Punjab, with the central agency deciding to credit money directly into paddy growers’ account in coming paddy lifting season 2011-12.
Under the new payment system, FCI will rope in several banks including Punjab Cooperative banks and farmers will be asked to open accounts in these banks for getting payment into their accounts.
Though FCI has shown resolve to implement direct payment mode in order to bring transparency, commission agents said they would approach the Centre for stopping FCI from switching over to new payment system.
From October 1, FCI has decided to pay directly to farmers for paddy buying in Punjab within 48 hours of buying the crop.
Under the new payment system, FCI will rope in several banks including Punjab Cooperative banks and farmers will be asked to open accounts in these banks for getting payment into their accounts.
“We will soon appeal to farmers to open their bank accounts in these banks to claim their payment for paddy selling for central pool,” a senior official of FCI told media.
FCI will also make payment of commission to Arthiyas through their bank accounts.
FCI last year had also announced to pay farmers directly but after the Punjab government approached Union Agriculture Minister Sharad Pawar, FCI kept direct payment system in
abeyance for one year.
Under the current payment system, FCI issues cheque of payment to commission agents and thereafter the commission agents make payment to farmers.
FCI usually procures 10 per cent of total arrival of paddy crop (130 lakh tonne expected) in coming season in Punjab.