New MP law used to get firm to pay farmers assured price, say district officers

The firm – Fortune Company – had entered into an agreement with paddy farmers to buy their produce at Rs 50 higher than the rate offered at the mandi. (Representational Image)

The district administration has stepped in to ensure that a group of paddy farmers who had entered into contract farming in Madhya Pradesh’s Hosangabad district were given the higher amount, as promised by the company in their agreement, by invoking the new law on contract farming, according to officers.

The firm – Fortune Company – had entered into an agreement with paddy farmers to buy their produce at Rs 50 higher than the rate offered at the mandi.

However, as prices soared to Rs 2,950 per quintal, the company’s agents reportedly switched off their phones after receiving calls from farmers.

According to district collector Dhananjay Singh, the group of farmers approached the district magistrate on December 9. Two of them – Pushpraj Patel and Brijesh Patel – submitted a written application about the firm not responding to their calls to buy their produce, as had been assured.

Sub Divisional Magistrate of Pipaliya Nitin Tale told The Sunday Express that farmers had entered into the contract and the company purchased the paddy until the price was hovering around Rs 2,500 up to Rs 2,800 per quintal but stopped responding when it touched Rs 2950 per quintal in the mandi.

Based on the farmers’ application, a reconciliation board with members of mandi board, district administration and the company were formed under section 14, 2A of the new law, and the company director was asked for an explanation. “The director agreed that there was a communication gap and assured to buy the produce at Rs 3,000 per quintal, which was about Rs 50 higher than the price on the specific day at the mandi,” Tale said.

Tale said the company has also assured all farmers who were willing to sell according to the rate on December 9 to the company that their produce will be procured accordingly.

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