To uncover wheat hoarding, authorities raid seed traders in Sirsa

In Sirsa district, where wheat production is at its peak this season, seed traders are allegedly storing more wheat than the permissible limit. To curb illegal stockpiling, the CM flying squad and the Haryana State Agricultural Marketing Board have launched a series of raids. During an inspection in Ellenabad on Monday, officials uncovered excess wheat stock held by the seed traders, which was reportedly being stored for resale in other states at higher prices. Over Rs 3 lakh fines were imposed on the traders. The illegal activity is linked to the evasion of market and development fees, growing out of state demand and the farmers choosing faster payments over the slow mandi process.

n What triggered the raids on the seed traders in Sirsa district?

The raids were launched after reports emerged that some seed traders were storing large amounts of wheat beyond the permissible limits. The season has brought a bumper wheat harvest in Sirsa, which has given the traders the opportunity to buy extra wheat directly from the farmers and avoid paying the usual government market fees. To curb the illegal activity, the CM flying squad and marketing board began inspecting various seed firms. In Ellenabad, fines of over Rs 3 lakh were imposed and in Kalanwali, more than Rs 28 lakh was collected as market committee fee and penalties. So far, the authorities have recovered lakhs in fees and penalties and more raids are likely.

n Why are the traders illegally storing wheat and what are the benefits?

There are three main reasons why the seed traders are storing extra wheat. First, they want to avoid the market committee fee and Haryana Rural Development (HRD) fee, which together make up 4 per cent per quintal. Second, wheat from Sirsa has a high demand in other states, allowing the traders to make big profits by selling it as seed or directly. Third, many farmers prefer selling wheat to the traders because it saves them from the long and complicated process of selling these in the government mandis. The farmers can unload their wheat quickly and get instant payment from the traders, unlike mandis where they often wait several days for their money.

n What challenges do the farmers face that push them towards the seed traders?

Many farmers in Sirsa say that selling wheat through the mandi system is a long and complicated process. First, they must register their crop on the ‘Meri Fasal Mera Byora’ portal. After that, they are issued a gate pass and the commission agent (Arthiya) provides a J-form. Once the crop is placed in the mandi, the farmers still worry about weather-related damage before the wheat is lifted. The payment is usually made 72 hours after lifting, but due to delays this season, some farmers have waited for over 10 days to receive their money. To avoid these hassles, many farmers choose to sell their produce directly to the seed traders. This way, they skip the paperwork and long wait times, and get paid immediately making it a faster and more convenient option.

n What do the seed traders and their association say about these allegations?

Anil Kalra, the district head of the Seed Producers Association, denied any illegal activity by the seed traders. He claimed that all traders followed legal procedures and operated through an online system that kept track of seed supply and expected crop yields. According to him, every stage from receiving breeder seeds from universities to producing certified seeds for sale is documented and transparent. Kalra said the full picture would become clear once the season ended. However, despite his claims, fresh raids in Ellenabad continue and reports suggest that 60,000 to 70,000 quintals of wheat might still be illegally stored across Sirsa district.

Haryana Tribune