Back Mar 11, 2025

Transporters reluctant to join wheat procurement amid policy dispute

With just 20 days left for the wheat procurement season to begin, transporters across Haryana are reluctant to participate in the tender process for wheat lifting, citing unfavourable policy changes introduced by the state government for 2025-26. Their refusal to apply for contracts has raised concerns about potential delays in procurement operations.

Despite agencies reissuing tenders, no applications have been received yet. The first round, floated in February, was opened on March 5, but no contractor applied. The agencies have now reissued the tenders, set to be opened on March 11, but transporters remain firm on their demands.

The government has made some relaxations in the transport policy after contractor protests, yet many argue that the changes still lead to significant financial losses. Transporters have filed a complaint with the Director of the Food, Civil Supplies, and Consumer Affairs Department, demanding further amendments.

Ashok Khurana, a transport contractor, criticised the revised penalty structure.

"Under last year’s policy, transporters had to lift procured wheat within 48 hours, failing which a Rs 500 per day penalty was imposed. In February 2025, this was revised to Rs 5,000 per day, which was exorbitant. Following protests, it was reduced to Rs 1,000 per day, but this is still too high. It should be Rs 100 per day," he argued.

Another major issue is the security deposit requirement. Previously, contractors needed to own at least 30% of their trucks or pay Rs 50,000 per truck as a refundable deposit. In February, this was increased to Rs 1.25 lakh per truck, with Rs 75,000 refundable and Rs 50,000 non-refundable. Facing resistance, the government adjusted it to Rs 1 lakh, with Rs 85,000 refundable and Rs 15,000 non-refundable.

"The department should abolish this requirement as we already deposit 10% of the total contract value as security," Khurana demanded.

Contractors also raised concerns over crops being rejected at godowns after waiting several days with loaded trucks, forcing them to return to mandis without compensation. This results in additional expenses on driver payments and fuel costs.

Khurana emphasised that transporters will not participate in the tender process unless their concerns are resolved.

"The government’s new conditions will cause heavy losses for transporters. We cannot operate under such financial burdens. Unless the policy is restored to its 2023 version, we will not apply for tenders," he said.

Despite the standoff, District Food and Supplies Controller (DFSC) Anil Kumar remained optimistic about contractor participation in the upcoming tender bid.

"No one applied in the previous tender bid. However, we have addressed most concerns. Preparations for wheat lifting and transportation under the 2025-26 policy are underway. The fresh bid will open on Tuesday and we are hopeful that contractors will apply," he said.

Source: The Tribune

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