Centre writes to Punjab govt to implement on-line direct cost system, compliance of PFMS

Days after the Food Corporation of India (FCI) directed the Punjab authorities to supply land data of farmers in order to make direct on-line cost of MSP to their accounts, the Union Ministry of Consumer Affairs, Food and Public Distribution has additionally despatched a letter to the state to implement on-line direct cost system and compliance of Public Financial Management System (PFMS) from the approaching rabi advertising and marketing season (2021-2022).
The letter additionally stated that these tips are adopted by majority states besides Punjab, the place MSP funds are nonetheless being paid by way of arhtiyas.
The Centre has been issuing such instructions to the state authorities for the previous couple of years. But in Punjab, cost of farmers comes within the accounts of the arhtiyas (fee brokers) who additional make it to the farmers by way of cheques or on-line switch.
In the letter addressed to the Principal Secretary (Food), Government of Punjab, Deputy Secretary GOI, talked about that he has been directed to refer the directions issued by the Centre, stipulating obligatory use of the Expenditure Advance Transfer (EAT) module of PFMS by June fifteenth 2018, failing which no additional funds launched to businesses (learn procurement businesses).

PFMS is a web-based on-line software program utility developed and applied by the workplace of the Controller General of Accounts (CGA) underneath which direct cost to the beneficiaries are made for presidency schemes. But right here, linking farmers accounts with PFMS was simply to pay their crop cash straight into their accounts.
The letter (copy of which is offered with The Indian Express) additional says that the target of PFMS/EAT Module is end-to-end monitoring of the funds until the final mile beneficiary.
As per PFMS mandate, the rollout may also lead to improved programme administration and administration, discount of float within the system, direct cost to beneficiaries and better transparency and accountability in the usage of public funds. In view of this, the division has commonly pursued with states to implement the instructions of on-line cost straight into the farmers’ financial institution accounts and compliance of PFMS.
The letter additionally acknowledged that the matter has additionally been mentioned in current conferences held on this division on January 19, 23, 25, 2021.
In case cost is completed by way of a state portal, the state authorities is required to combine their software program with PFMS in order that MSP cost to farmers could possibly be captured on an actual time foundation. It can also be requested {that a} report on preparedness for implementation of aforesaid instructions could also be furnished as early as doable, stated the letter.
The authorities primarily needs to maintain arhtiyas away from funds of MSP to farmers.
“Farmers’ accounts are never linked to the PFMS portal in Punjab as they never got direct payment for wheat and paddy in their accounts till date under this system. Instead of making payment to farmers under PFMS, the state government had put a condition on arhtiyas that every farmer will get payment through cheques from their respective arhtiyas but here too, unfair practices are adopted by arhtiyas, who at the time of issuing cheques to the farmers, send their munim (accountant) with farmers to the bank for its encashment and after encashment, the munim pays the farmers after making several cuts. A common farmer, who is dependent on arhtiyas, never gets full MSP from the arhtiya,” stated Jagmohan Singh, basic secretary, Bharti Kisan Union (BKU) Dakuanda, including that the arhtiyas’ most important enterprise is cash lending to the farmers at excessive charge of curiosity as there’s hardly any correct report of this and no authorities management.
“Due to this, majority arhtiyas are concerned within the exploitation of farmers, who carry on paying curiosity of over curiosity on principal quantities for many years.
“If farmers are dependent on them, that does not mean that they get the license of exploiting them as fair deal is needed here,” he added.
In a number of circumstances, advance cheques are taken by ‘arhtiyas’ from farmers on the time of giving cash on credit score underneath their cash lending enterprise to him (farmer) and these cheques are used on the time of crop cost.
“We are not against commission agents but the unscrupulous money lending business of them with the farmers,” stated Jagmohan Singh.
Prof. Sukhpal Singh, Principal Economist (Agriculture Marketing), Punjab Agriculture University (PAU) Ludhiana, stated: “Arhtiyas are additionally making huge bucks by offering credit score to the farmers at 18 to 24 per cent charge of curiosity and in accordance with an estimate, round 20 per cent (Rs 18,000 to twenty,000 crore) of the full debt of the farmers in Punjab is supplied by the arhtiyas, who hardly present any honest report to the farmers about their return and farmers at all times remained indebted to them.
“Arhtiyas who always object to direct payment will not be able to charge money from farmers according to their own wishes after PFMS system,” stated one other farmer chief, including that if arhtiyas are honest of their cash lending system, then many of the farmers would have been debt-free at the moment within the state and it is extremely a lot doable if the state authorities units correct norms for arhtiyas.

Punjab alone has some licensed 48,000 arhtiyas, of which 28,000-odd are lively. They mainly present platforms outdoors their retailers the place the produce of farmers is unloaded, cleaned, auctioned, weighed and bagged, earlier than being loaded and moved from the mandi premises.
For these companies, they’re given a 2.5 per cent fee over and above the MSP and this fee involves round Rs 1,400 crore yearly for procurement of the wheat and paddy solely, and the Centre doesn’t need to pay it.Principal Secretary (Food) Punjab KAP Sinha stated that underneath the PFMS system, arhtiyas will get their fee for the amenities they supply. “But greater than fee, arhtiyas have an interest on this unfair cash lending enterprise,’’ stated Jagsir Singh, a BKU (Ugrahan) chief.