Indebtedness Settlement Bill passed amid objection by ruling party MLAs

Amid opposition by ruling party MLAs, the Punjab assembly on Monday approved amendments in the Punjab Settlement of Agricultural Indebtedness Bill.

“How can we cap the limit on per acre credit taken by farmers from arhtiyas?” questioned Congress MLA from Gidderbaha Amrinder Singh Raja Warring. As per the amendment, the government plans regulate the noninstitutional credit system to farmers largely controlled by the arhtiyas (commission agents).

Warring also said that the five division-level debt settlement tribunals proposed by the government would do no good to farmers as they had to travel long distances to redress their grievances. To this, finance minister Manpreet Singh Badal said the government had to switch to the new system as the earlier arrangement of district-level redressal forums couldn’t work out.

Another MLA of the ruling party Sangat Singh Gilzian said the amendments were not practical as it will lead to friction in ageold relation between farmers and arhtiyas. “What if a farmer needs money in exigency or illness? If he had already taken credit to the limit of ₹15 lakh fixed by the proposed

amendment, where will he go?” he asked.

Former finance minister in the previous SAD-BJP government Parminder Singh Dhindsa said the bill should be withdrawn as MLAs of the ruling party were not convinced.

Speaking in favour of the Punjab Agricultural Produce Markets (amendment) Bill, by which sate government propose to impose a cess of 20% on the commission of 2.5% arhtiyas are entitled, finance minister Manpreet Badal said: “In 10 years, between 2007 and 17, arhtiyas received

commission of ₹45,000 crore on procurement of wheat and paddy and 10,000 farmers committed suicide. Why not we charge from the arhtiyas to support the beleaguered farmers?” he asked.

As per the amendment, the state government levies agricultural produce price stabilisation fee on commission paid to arhtiyas on sale, purchase or both of agricultural produce. The percentage of cess will be announced in a notification. The MLAs opposed to the cess saying it will put huge burden on the arhtiyas.