Himachal Apple Growers Await Rs 6.12 Crore in Unpaid Dues Amid Rising Fraud Complaints
Apple growers across Himachal Pradesh are grappling with significant financial distress as they await payments totaling Rs 6.12 crore, with fraud complaints against commission agents, known as arhtiyas, continuing to escalate. Over the past three years, a staggering 379 complaints have been registered against these agents, who are accused of failing to compensate horticulturists after procuring their valuable apple produce. This critical issue was highlighted by Agriculture Minister Chander Kumar during the third day of the ongoing budget session in the state legislative assembly on Wednesday.
Low Resolution Rates and Mounting Concerns
Of the total 379 cases, only 59 have been fully resolved, with an additional 10 partially settled, resulting in the recovery of just Rs 1.93 crore. The majority of the dues remain outstanding, raising serious concerns among horticulturists who play a pivotal role in the hill state's robust Rs 4,500-crore apple economy. The lack of timely payments threatens the livelihoods of these farmers and undermines the stability of this vital agricultural sector.
Government Response and Proposed Measures
In response to a query from Congress MLA Kuldeep Singh Rathore, representing Theog, Minister Kumar emphasized the urgent need to increase the fixed security deposit required from commission agents to deter fraudulent practices. Currently, the deposit requirements are tiered based on business volume:
- Rs 5 lakh for business up to Rs 15 crore
- Rs 10 lakh for Rs 25-crore business
- Rs 15 lakh for Rs 50-crore business
- Rs 25 lakh for Rs 75-crore business
- Rs 50 lakh for transactions exceeding Rs 75 crore
The minister asserted that the government believes apple growers should receive payment within a week of sale to ensure financial security and trust in the system.
Regional Breakdown of Complaints
Region-wise, the highest number of complaints—191 cases involving Rs 2.38 crore in non-payments—were reported from the Agricultural Produce Market Committee (APMC) mandi at Solan. Another 144 cases, amounting to Rs 3.43 crore, were registered in the APMC markets of Shimla and Kinnaur, while 44 complaints worth Rs 30.30 lakh originated from Kullu and Lahaul-Spiti. Rathore alleged that APMC authorities are not taking stringent action against commission agents, some of whom hail from states like Tamil Nadu and Andhra Pradesh, exacerbating the issue.
MLA LAD Grants and Financial Discussions
As opposition legislators vigorously raised the payment issue, Chief Minister Sukhvinder Singh Sukhu assured the House that the pending MLA Local Area Development (LAD) grant of Rs 1.10 crore per legislator for the 2025-26 fiscal year would be released before March 31, as stipulated in the current budget. For all 68 MLAs, the total pending amount stands at Rs 74.80 crore. Sukhu noted that with the financial year ending on March 31, the government is also considering releasing discretionary grants.
The Chief Minister announced plans to meet with the leader of the opposition, Jai Ram Thakur, and other legislators to discuss the financial situation, particularly after the stoppage of the revenue deficit grant (RDG), and to determine future allocations for MLA LAD funding. He clarified that MLAs can allocate only 10% of their annual Rs 2.20 crore MLA LAD entitlement to Mahila Mandals. Earlier, Thakur emphasized that if the budget has been passed, delaying its provisions contradicts the constitutional spirit, and many development works remain pending as a result.
Guest House Construction and Jal Jeevan Mission Funds
In a related development, Deputy Chief Minister Mukesh Agnihotri clarified on Wednesday that no new guest house in the state will be constructed without cabinet approval. He explained that the central government has mandated that the state must bear the financial burden for guest houses built in Himachal Pradesh using Jal Jeevan Mission funds, as such construction does not fall under the scheme's mandate.
Responding to a question from Dharampur MLA Chander Shekhar, Agnihotri revealed that over the last three years, the state received Rs 2,101 crore under the Jal Jeevan Mission, but Rs 1,227 crore is still pending with the Centre, despite works worth Rs 600 crore already being completed. The state government has strongly urged the Centre to release the pending Rs 1,227 crore at the earliest. Una MLA Satpal Singh Satti stressed the need for stricter monitoring to prevent misuse of funds in schemes for unintended purposes.
