In a move to bring transparency to grain markets, a Public Interest Litigation (PIL) has been filed in the Punjab and Haryana High Court against the practice of commission agents (arhtiyas) issuing ‘kachi parchi’ (informal handwritten receipts) to farmers. The petition highlights the systemic exploitation and financial risks associated with this archaic practice.
The Issue of Accountability According to the report by The Tribune, the petitioner argued that arhtiyas frequently bypass the mandatory ‘Form J’—the official digital receipt—in favor of informal slips.
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No Legal Backing: ‘Kachi parchis’ are not recognized by banks or insurance companies, making it difficult for farmers to prove their income or claim crop insurance in case of damages.
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Tax Evasion: The PIL alleges that these informal transactions facilitate tax evasion and the non-payment of market fees, leading to a loss for the state exchequer.
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Price Manipulation: There are concerns that without a formal record, farmers are vulnerable to unauthorized deductions and lower-than-MSP (Minimum Support Price) payouts.
High Court’s Direction The High Court has issued a notice to the Haryana State Agricultural Marketing Board and the state government. The bench observed that in an era where the government promotes digital platforms like e-NAM, the persistence of handwritten, informal receipts is contradictory to the goal of farmer empowerment.
The petition demands that the government make it strictly mandatory for arhtiyas to generate an automated ‘Form J’ for every transaction, with a copy sent directly to the farmer’s registered mobile number or bank account.
