Food Corporation of India (FCI) has tied up with a few banks for direct payment to farmers for the grains to be procured in the kharif marketing season 2010-11.
"We are firm on our stand and we will try to put direct payment system to farmers into operation from the coming paddy procurement season," a senior official of FCI told media here.
FCI has made arrangements with the State Bank of India, State Bank of Patiala and Punjab National Bank for crediting the money for paddy procured by the Centre directly into the accounts of the farmers.
"Besides, we are also in the process of roping in state owned cooperative banks as they have wider reach in rural areas for implementing direct payment system," he said.
"Farmers will also be informed about the crediting of their accounts through SMS services," he added.
In the coming season, FCI has been allotted 119 mandis for lifting paddy out of total 237 grain markets to be set up in Kharif Marketing season.
"To ensure farmers do not face any trouble in getting payment, we may also double the number of our pay offices (from where the cheque are distributed)from 30 at present in the state," he asserted.
FCI, which procures 10 per cent of total procurement in the state, last month decided to make direct payment to Punjab farmers from the forthcoming kharif marketing season instead of the current practice of issuing cheques.
Under the current payment system in Punjab, FCI issues cheques to commission agents known as ‘Arthiyas’ who then makes the payment to the farmers.