- Why in news
- On 16 March 2026 the Centre approved higher commission rates for Arthiyas and cooperative societies that procure wheat and paddy for the Government, from Rabi Marketing Season 2026-27.
- What it is
- Government procurement of wheat and paddy at MSP relies on intermediaries in mandis, mainly Arthiyas (commission agents) and cooperative societies. They aggregate, clean and handle grain for state agencies and FCI, and are paid a commission per quintal under central guidelines. The rates are revised from time to time after states ask for it.
- Arthiya commission, wheat
- In Punjab and Haryana it rises from ₹46.00 to ₹50.75 per quintal. In Rajasthan it rises from ₹41.40 to ₹45.67 per quintal.
- Arthiya commission, paddy
- The commission for paddy rises from ₹45.88 to ₹50.61 per quintal.
- Cooperative societies
- Wheat commission rises from ₹27.00 to ₹29.79 per quintal. Paddy commission rises from ₹32.00 to ₹35.30 per quintal.
- Modern silos
- Commission at modern silos is 50 per cent of the mandi rate, as under the existing policy.
- How the rates were set
- A sub-committee of FCI, state governments and the Department of Food and Public Distribution examined rates after state requests and recommended the revision.
Don’t confuse with Procurement commission vs MSP: MSP is the price paid to farmers. The commission is a per-quintal fee paid to intermediaries for aggregation and handling.
Don’t confuse with Arthiyas vs cooperative societies: Both procure for the Government, but Arthiyas are private commission agents and get higher commission than cooperative societies.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Keeps intermediaries motivated to run MSP procurement smoothly in major wheat and paddy states.
Problems
- The Arthiya system can tie farmers to agents through informal credit, and higher commission raises the cost of procurement.
Way forward
- Move towards direct payment to farmers' bank accounts, digitised mandis and more cooperative or silo-based procurement.
- 2014Mains GS3 · Q3Critically examine whether APMCs impeded agriculture and caused food inflation.
- 2026Mains GS3 · Q4Explain inefficiency factors in agri-produce marketing and e-commerce's role.
- 2022Mains GS3 · Q13Main bottlenecks in upstream and downstream agricultural marketing in India.
- 2019Prelims Q79Economic cost of food grains to FCI includes what components?
- 2020Prelims Q69Whether MSP procurement is unlimited and whether MSP stays above market prices.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Commission revised from RMS 2026-27 for wheat and paddy procurement. Relevant to MSP and procurement, but rate figures are rarely asked.
Source: PIB, Ministry of Consumer Affairs, Food & Public Distribution, 16 Mar, 22:05 IST · Release 286094
Worth revising until Prelims 2027: most news questions come within two years of the event.