Arthiyas' Strike Disrupts Paddy Procurement in Haryana and Punjab

Paddy procurement efforts in Punjab and Haryana have faced significant disruption due to a strike by commission agents, known as arthiyas. These agents are demanding a 2.5% commission on crop purchases, in contrast to the current fixed remuneration of ₹46 per quintal established by the government.

Manjinder Singh, secretary of Khanna Mandi in Punjab—one of the largest cereal wholesale markets in the country—reported that while procurement of basmati rice has resumed, the strike continues for the common variety of paddy purchased by government agencies under the minimum support price (MSP) scheme.

Additionally, rice millers in both states are protesting against a government decision to stock paddy at their facilities, a measure prompted by a storage crisis due to excess rice stocks in the central pool managed by the Food Corporation of India (FCI). The Punjab Rice Industry Association has urged the state government to store paddy in its warehouses or, if necessary, allow it to be stored in mills with the owners' consent.

Over 50,000 arthiyas in Punjab and around 25,000 in Haryana traditionally received a 2.5% commission on crops procured by government agencies. However, since the food ministry set the commission at ₹46 per quintal in 2018-19, agents have argued that this compensation has become economically unviable.

Officials noted that state agencies began purchasing paddy in Tamil Nadu and Haryana two weeks ago, coinciding with the arrival of early-harvested varieties. So far, only 0.32 million tonnes (MT) of paddy have been procured in Tamil Nadu (0.25 MT) and Haryana (70,781 tonnes), a significant drop from the 1.22 MT purchased during the same period last year.

For the current kharif season (2024-25), state agencies and the FCI aim to purchase 48.5 MT of rice, compared to 46.3 MT from the previous season. The kharif season typically accounts for about 80% of total rice purchases. Punjab is targeting to procure 12.5 MT of rice equivalent from paddy, while other key states contributing to procurement include Chhattisgarh (7 MT), Uttar Pradesh (4.1 MT), Haryana (4 MT), and others.

After meeting their public distribution system needs, grain surplus states transfer excess stocks to the central pool managed by the FCI, where the procured paddy is then milled into rice, adhering to a conversion ratio of 67%. As talks between government officials and arthiyas continue, there is hope for a resolution to the strike.