'Arhtiyas' & Farmers Struggle as Price Crashes Hit Panjab

Panjab is in the throes of an agricultural crisis, with at least 31 arhtiyas (commission agents) and countless farmers entangled in delayed payments, price crashes, and shifting state policies. A cybercrime probe into a suspected Minimum Support Price (MSP) fraud has frozen nearly USD 501K in commissions and expenses, leaving both procurement agencies and arhtiyas uncertain. Investigators alleged manipulation in the Anaaj Kharid (buy grains) portal diverted MSP funds to unauthorized bank accounts, prompting the Punjab Food, Civil Supplies, and Consumer Affairs Department to demand verification of MSP recipients. Meanwhile, Panjab is trying to reignite cotton cultivation via a Union government scheme that offers USD 80 per acre for planting anything but paddy, aiming to curb water-thirsty rice and strengthen underperforming crops like maize and cotton. Officials worry the area under paddy, which hit a record 3.2M hectares last season, may remain high unless alternative incentives materialize fast. However, some farmers criticize delayed or lapsed Union government grants, recalling USD 35.1M that went unused last year. In cotton, India’s new five-year mission for higher yields has drawn skepticism in Panjab, where area under the crop has plummeted. Growers claim government pledges—like Modi’s 5 F ‘farmer to fibre to factor to fashion to foreign’ promise—have not stabilized prices or facilitated exports. Adding to the turmoil, cauliflower and cabbage farmers face a glut, fetching as low as INR 1-2 per kg, causing many to destroy crops outright. Although horticulture officials promise cold storage solutions and a push for food processing, cultivators argue that better planning, market linkages, and MSP-based safety nets are essential. With some farmers shifting to more lucrative or assured schemes and others drowning in debt, the pressing need for comprehensive policy changes remains urgent, as time is running out before another sowing cycle begins.