In a bid to ensure transparency, the Centre on Friday said it has asked Punjab and Haryana to ensure online payment of dues to farmers from the coming season but made it clear that it was not a move to end the role of arthiyas or agents in the wholesale markets.
The Centre said it planned to release more than Rs 2.97 lakh crore towards food subsidy during the current financial year over and above the Rs 1.25 lakh crore spent so far this fiscal.
Both Punjab and Haryana have been approaching the Centre seeking an exemption or more time for implementation of direct online payment initiative.
However, the Centre has directed Punjab and Haryana to ensure online payment to farmers through e-mode from the upcoming season and that no further relaxation on this account will be accorded.
Of the Rs 4.22 lakh crore food subsidy payouts, Punjab will get more than Rs 1.16 lakh crore, which accounts to 27.61% of the total payout, while Haryana was likely to receive Rs 24,842 crore.
“E-mode of MSP payment is already in force across India, Government of India has been trying to ensure the same in Punjab and Haryana at least since 2015-16,” the Ministry for Food and Consumer Affairs said in a statement.
The statement said the push for e-payment was not a move to replace the Agricultural Produce Market Committee, but to strengthen transparency and eliminate leakages.
It said that the e-payment mode was adopted partially in Punjab and Haryana where payment of MSP was made to farmers through arthiyas.
In Haryana, the Food Corporation of India made payments directly into farmers’ bank accounts.
The state agencies have to also ensure the use of the Expenditure Advance Transfer module of the Public Financial Module System (PFMS) while making payment.
“The state governments have to integrate their online payment system with PFMS. The online payment system shall necessarily have the feature of online registration of farmers and online payment to them as mandated by Government of India,” it said.