Govt Raises Commission for Wheat and Paddy Procurement Agents Ahead of 2026–27 Marketing Season

The Government of India has approved a revision of commission rates payable to Arthiyas (commission agents) and cooperative societies involved in the procurement of wheat and paddy on behalf of the government, effective from the Rabi Marketing Season (RMS) 2026–27.

The decision aims to strengthen procurement operations and ensure that intermediaries and aggregators involved in the government's food grain procurement system are adequately compensated for their services.

The revised rates were approved following recommendations from a sub-committee comprising representatives from the Food Corporation of India (FCI), State Governments and the Department of Food and Public Distribution, which was constituted after several states requested an upward revision of commission rates.

Key Role of Arthiyas and Cooperatives in Procurement

Under the existing procurement framework, Arthiyas, cooperative societies, sub-agents and procurement agencies act as intermediaries between farmers and government procurement agencies.

They facilitate:

• Aggregation of produce from farmers

• Coordination with procurement agencies

• Documentation and compliance with procurement norms

• Delivery of food grains to government agencies such as FCI

Their role is particularly significant in major grain-producing states where procurement is conducted through Agricultural Produce Market Committees (APMCs) and mandis.

Commission for Wheat Procurement Increased

Following the revision, commission rates for wheat procurement have been increased in key states.

For Arthiyas in Punjab and Haryana, the commission for wheat procurement has been increased from:

• ₹46.00 per quintal to ₹50.75 per quintal

For Rajasthan, the commission has been raised from:

• ₹41.40 per quintal to ₹45.67 per quintal

These revisions are expected to support smoother procurement operations during the upcoming wheat procurement season.

Higher Commission for Paddy Procurement

The government has also approved a revision in commission rates for paddy procurement.

For Arthiyas, the commission will increase from:

• ₹45.88 per quintal to ₹50.61 per quintal

The revised rates are intended to reflect operational costs and ensure continued participation of commission agents in the procurement ecosystem.

Cooperative Societies Also Benefit from Revision

The commission payable to cooperative societies engaged in procurement has also been increased.

Under the revised structure:

• Wheat procurement commission will increase from ₹27.00 per quintal to ₹29.79 per quintal

• Paddy procurement commission will increase from ₹32.00 per quintal to ₹35.30 per quintal

Cooperatives play an important role in government procurement operations by aggregating produce from farmers, particularly in rural areas where institutional procurement systems are limited.

Special Provision for Modern Silos

The government clarified that procurement carried out through modern grain silos will continue to attract a lower commission rate, in line with existing policy guidelines.

Under the current framework:

• Commission payable at modern silo facilities will be 50% of the commission rate applicable in mandis.

This policy is aimed at encouraging the adoption of modern storage and supply chain systems while maintaining cost efficiency in procurement operations.

Strengthening India's Food Procurement System

India's government procurement system is a key pillar of the Public Distribution System (PDS) and food security framework.

Through agencies such as FCI and state procurement bodies, the government purchases wheat and paddy from farmers at the Minimum Support Price (MSP) to ensure price stability and maintain buffer food stocks.

The revision of commission rates is expected to support the smooth functioning of this procurement network by ensuring that intermediaries and procurement agencies remain financially viable while facilitating efficient procurement operations.