This Article is From Jul 03, 2015

Wheat Payments: Relief Announced by Centre Yet to Reach Punjab Farmers

File photo of wheat farmers in Punjab

Chandigarh, Punjab: Farmers in Punjab are still waiting for compensation promised by the Centre during procurement of wheat by the Food Corporation of India (FCI) and state government agencies.

The Narendra Modi led government had announced in April that it would reimburse the amount of value cut being imposed during procurement of wheat in six states including Punjab.  

But two months have passed, and farmers who sold wheat directly to FCI are yet to receive any compensation. Punjab farmers say that FCI had mopped up Rs 20 crore in the form of value cut from them.

FCI is the nodal agency for procurement and distribution of food-grains in the country run by the Centre.  

Farmers like Karnail Singh earned Rs 1,450 per quintal when he sold a part of his crop at the local wholesale market in Kharar, but when he sold the remaining crop in Chandigarh's grain market, Rs 10.88 were deducted by FCI as value cut.

"When I sold my crop in Punjab, I got full MSP... but in Chandigarh wholesale market... value cut was imposed... two months have passed...not sure if I will get the balance payment now," said Mr Singh.

FCI had directly procured 18.48 lakh metric tonnes of wheat from farmers in the state, while procurement of about 80 lakh metric tonne was done through five agencies of the state government.

Farmer union leader Balbir Singh Rajewal told NDTV, "for the first time any government has imposed value cut on farmers... while the Punjab government agencies paid full MSP since Badal government had assured reimbursement... but FCI paid only Rs 1439 per quintal."

Through a circular issued on 26th April of which NDTV has a copy, FCI directed its area managers to make payments after deducting value cut amounts. The circular claimed that the state government would reimburse this deducted amount to farmers.

But the state government says that the Centre has to pay this money.

Chief Minister Prakash Singh Badal said, "whatever we procure, we do it on behalf of the FCI... so any payment whatsoever has to be done will be done by the Centre and not the state govt."

Earlier the state government had denied compensation to farmers for destroyed crop due to bad weather. Now hopes of reimbursement from Centre are receding, compounding the woes of the already distressed farmers.
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