Karnataka: Reliance inks pact with Raichur firm to procure 1,000 quintals of paddy

RAICHUR: In probably the first such transaction between a big company and farmers since the promulgation of the amended APMC Act in Karnataka, Reliance Retail Limited closed a deal for the purchase of 1,000 quintals of Sona Masoori paddy from farmers of Sindhanur taluk in Raichur district.
Around a fortnight ago, agents registered with the company signed an agreement with Swasthya Farmers’ Producing Company (SFPC), an agro-based firm in Sindhanur.Although SFPC mostly deals with trade in oil, the firm ventured into procurement and sale of paddy, and 1,100 farmers in the taluk registered with it.
Reliance Retail Ltd stipulated that there should be less than 16% moisture in the crop. It is offering Rs 1,950 for one quintal of Sona Masoori, which is Rs 82 more than the minimum support price (MSP) for the crop set by the government (Rs 1,868). A copy of the purchase order for 100 quintals signed between SFPC and Reliance on Thursday is available with TOI.
The tie-up entitles SFPC to a 1.5% commission for every transaction of Rs 100. The farmers have to bear expenses of the sacks used to pack the crop and transporting them to the warehouse in Sindhanur.
SFPC managing director Mallikarjun Valkaldinni said the quality of the paddy currently stored at the warehouse (500 quintals) will be tested by a third party. “Once the quality is found to be satisfactory, Reliance’s agents will procure the crop, transfer money to SFPC online and credit it directly to farmers’ accounts,” he said.
To ensure the crops are not tampered with at any stage, vehicles used for transporting paddy will be tracked using GPS, he added.
However, not everyone is enthused about the deal. President of Karnataka Rajya Raitha Sangha and Hasiru Sense Chamarasa Malipatil said corporate entities tend to lure farmers by offering more than the MSP initially and later start exploiting them. According to them, in the process, APMC mandis have very little role to play.