MSP will be Transferred Electronically to Punjab & Haryana Farmers; No Change in APMC Market

The Central government has taken a big decision for the farmers of Punjab and Haryana. The government said that the MSP will be transferred electronically by the next season. And if this won’t be implemented, MSP payment may stuck.

With this, the government will give a subsidy of 2.97 lakh crore rupees on food in the upcoming one and a half months. The subsidy will be given till the end of this financial year, i.e., 31 March.

Dues Elimination & Mandis will Remain

As per the information, the government wants to eliminate all the previous dues through this subsidy. The food ministry said that along with this, states like Punjab and Haryana will have to pay the minimum price of crops (MSP) to the farmers through electronic mode. The Food Ministry has said that this is the reason behind the transfer of MSP electronically so that there won’t be any delay in getting the money. And the current practice of procurement will be same in the new system. i.e., mandis will remain.

National Food Security Act

The government purchase subsidized food under the National Food Security Act. Means, it purchases the grains from the farmers at expensive prices and sells to the people at low prices. Under this law, the Central government gives 5 kg of wheat and rice to 80 crore people every month. This grain is given at 2 to 3 rupees per kg.

The government has given a subsidy of 1 lakh 25 thousand 217 crore rupees this year. And, a subsidy of 2 lakh 97 thousand 196 crore rupees will be given by the end of March.

According to the budget pager presented recently, the food subsidy has increased to Rs. 4 lakh 22 thousand 618 crore. This is a revised estimate for 2020-21. The Central Government has also given free ration to poor migrant laborers. It was given during the corona. This is why the government’s subsidy increased.

For the next financial year, food subsidy of 2 lakh 42 thousand 836 crore is estimated.

No Change in APMC Market

The government has mentioned that there are no plans to eliminate the middleman in Punjab & Haryana. And no such order is given to the mandis. The government said that electronic payment will ensure direct transactions among farmers, jobbers, and mandis, and will maintain transparency. And there is no intention to change the current APMC market.

It is important to mention that, to deliver the MSP, already electronic payments are used in the country. And the government is trying to implement it in Punjab and Haryana from 2015-16, but the state governments of these two states are still asking for time for direct online payment. In Punjab and Haryana, payments are still made through the jobbers.  The government has now said that there will be no relaxation in its schedule from the next season.

The farmers of Punjab and Haryana are opposing the new agricultural laws.