By Navneet Mishra
New Delhi, Dec 12 : The first action has been taken in Madhya Pradesh under the new Contract Farming law introduced by the Narendra Modi government. A company had stopped procurement after price rise, but after action was taken the same company has agreed to purchase the produce of farmers.
The Agriculture Department of Madhya Pradesh has taken action under the ‘Farmers (Empowerment and Protection) Contract Price Assurance and Agricultural Services Act 2020’ after a complaint was received.
In June 2020, Delhi-based Fortune Rice Limited company signed an agreement to purchase paddy at the highest price in the mandi from farmers of other villages including Bhaukhedi in Pipariya tehsil of Hoshangabad district. The company initially procured paddy as per the contract. But, on December 9, the company stopped the purchase and also stopped taking calls after the paddy price touched Rs 3,000 per quintal.
On December 10, Bhaukhedi farmers Pushpraj Patel and Brajesh Patel complained to the Pipariya SDM. The district administration sought guidance from the Agriculture Department on the complaint. The Department advised them to take action under Section 14 of the Contract Farming Act and pass orders against the trader if he did not agree to continue the procurement.
The SDM court of Pipariya summoned the authorised representative of Fortune Rice Limited for a reply within 24 hours. Ajay Bhalotia, director of Fortune Rice Limited, responded to the summons. Article ‘a’ was added to the “Farmers (Empowerment and Protection) Contract Price Assurance and Agricultural Services Act 2020” section 14(2) and a Board was set up which included the Tehsildar and farmers’ representatives.
Before the Board, the company accepted the purchase of paddy at the highest rate as per the contract before December 9 and accepted that it stopped the procurement after price rise. After consultations with the Board the company agreed to purchase the paddy at a price of Rs 2,950 per quintal along with Rs 50 bonus, making it a total of Rs 3,000.
Officials say that through the new Farmers Act, the highest price as per the contract could be provided to the farmers within 24 hours of receiving the complaint. With this decision, the farmers will be able to sell their produce to the company as per the contract. There will be no compromise on their interests.
Disclaimer: This story is auto-generated from IANS service.