The Hindu : Tamil Nadu / Cuddalore News : Traders' lobby `exploiting paddy growers'

Online edition of India's National Newspaper
Saturday, Oct 16, 2004

Tamil Nadu

Tamil Nadu - Cuddalore

Traders' lobby `exploiting paddy growers'

By A.V. Ragunathan

CUDDALORE, OCT 15. Paddy growers in Cuddalore district say they are at the mercy of a traders' syndicate, which is exploiting the plight of the farmers to procure paddy at very low prices. These traders collectively decide the purchase price, which is un-remunerative for the farmers.

Farmers have been forced to dispose of the paddy at rock bottom prices, reports say. In the past three months, the traders' lobby has reduced the price of paddy (Athisaya Ponni or ADT-43 variety) by about Rs 200 per 75-kg bag.

Since there are few Direct Purchase Centres, the farmers have to depend upon the Marketing Committee centres for the sales. In this situation, the traders hold the upper hand, farmers say.

The farmers drew the attention of Collector Gagandeep Singh Bedi to the problem at a Farmers' Grievance Day session held here today.

Purchase prices

R. Vriddhagiri of Vriddhachalam said paddy, which was selling at Rs 550 per bag of 75 kg in June, 2004 had now been slashed to Rs 350. In some places, it had dropped to Rs 190 a bag.

S. Venkatesan of Karmangudi said the farmers were hard pressed because they had to repay loans obtained from banks and others. The farmers did not have the wherewithal to stock the paddy till they realised good prices. Moreover, there was a danger of the paddy getting spoiled for want of adequate drying yards and changes in the weather.

The working of the DPCs had become whimsical and therefore undependable, and their inconvenient location was a disincentive to the farmers.

They appealed to the Collector to break the syndicate and enable the farmers to get remunerative prices for their produce.

The Collector said a committee would be formed under the District Revenue Officer to probe the issue. He assured them that more DPCs would be opened.

Collusion between traders, officials

Our Vellore Staff Reporter reports:

Similar complaints have been expressed farmers at the Grievances day meeting held in Vellore on Friday.

The farmers alleged that in the regulated market in Vellore, traders crowded the tables where the produce is auctioned, and the papers containing the bid amount were not opened in the presence of farmers who are thus unaware of the competing bids.

They attributed this practice to "collusion" between the traders and the officials of the regulated market.

Another farmer alleged there was a difference of Rs.50 per bag of paddy between the prices quoted at the regulated markets in Arcot and Ammoor.

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