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The Agriculture Produce Mandis in Punjab: Extortion disguised as facilitation

May 20, 2025 By Guest Author

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  1. Brig PS Gothra (Retd)

Paddy Procurement in Punjab Mandis

Military veterans are a close knit community. On retirement we put aside our ranks and keep in touch with our colleagues from the unit and others who have served with us. When the paddy harvesting began in Punjab last year, I rang up a veteran soldier from my unit who had started farming his lands post retirement.

He was quite happy with the crop but told me in the usual soldierly matter-of-fact manner that every farmer was being compelled to shell out ₹200 to ₹300 per quintal of rice — not to improve quality or logistics, but simply to get it procured.?

My family, though from an agricultural background, has not been into farming for generations. My great-grandfather sold off all our agricultural land of the belief that Zamin (land) causes disinterest in studies and eventually leads to fights between brothers. Since then, we have not produced a single grain ourselves. But the blood still boils when we hear of injustice in the fields.

So, I rang up an Ardhti (commission agent) friend to make sense of it. His version? The state government didn’t coordinate with the Centre to get the godowns cleared in time. With no space for storage, procurement was delayed. Rice shellers and Ardhtis then demanded “a little extra” from farmers under connivence of the administration — just to store their grain safely. He added that a cut of the profit was being sent up the chain to the highest level of government.

His answer smelled like half-truths.

Next, I turned to a retired Subedar who now grows crops. He said inspectors were stalling procurement, citing high moisture content in the grain which is a result of untimely rains. But since his crop was within limits, he pushed back and got the Ardhti to reduce the bribe to ₹130 per quintal. That made me suspicious. So, I spoke to another friend, a farmer tilling over 50 acres. “My grain was perfectly fine,” he said. “I didn’t pay a paisa. I told them I’d call for a protest — I’m an active union guy. They backed off.” I realised that politics have their own benefits in the farming profession in Punjab. No wonder there are so many farmer unions and farmer leaders to be found in the state.

To cross-check, I spoke to a well-informed acquaintance. He confirmed: farmers with grain having moisture beyond the permissible limit were indeed paying bribes — to get full MSP. The system was already under stress because traders bringing cheaper grain from UP and Bihar were panicking due to late procurement. In their desperation, they began paying more for early lifting.

Going by these versions, I realized that probably:

  • Some farmers with decent grain paid and lost.
  • Some with substandard grain made more.
  • The grain smugglers took a hit — but probably fleeced farmers back in UP and Bihar.
  • Ardhtis, shellers, officials, and the ruling party — everyone got their cut.

And the only real loser? The central government, which will now pay for moisture that will soon evaporate into thin air.

Maybe I’m overthinking. Maybe my non-farmer background clouds my understanding? But one thing is certain – the mandi system in Punjab reeks of corruption and exploitation. I reach this conclusion because all those involved in the production and procurement process had the same thigh to say.

One wonders what methodology has been adopted to fleece the farmers in the ongoing wheat procurement.

It left me wondering — where were the central intelligence agencies and the enforcement directorates? Why the eerie silence from opposition parties at the so called common knowledge? And how did the media miss the whole woods?


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