The Hindu : Tamil Nadu News : Efforts on to streamline payment in Erode turmeric market

Online edition of India's National Newspaper
Saturday, Jun 02, 2007
ePaper

Tamil Nadu

Tamil Nadu

Efforts on to streamline payment in Erode turmeric market

Karthik Madhavan

Entire transaction takes about a fortnight, until when farmers await payment

In the current system farmers and market committee employees are at risk

ERODE: Turmeric farmer Ramasamy is a worried man. This Anthiyur farmer who sold his produce to a trader more than a week ago at the Regulated Market Committee complex here is yet to receive payment.

All that he has in hand is a cheque from the trader.

Holding it in hand, Mr. Ramasamy walks from the market to bank to enquire if the trader has deposited money in his account for him to withdraw. This is what the farmer undergoes every time he sells turmeric at the regulated market.

And, he is not alone; most farmers, including those from far off places like Tiruvannamalai, suffer the fate of delayed payment.

Enquiries at the market reveal that most often traders, who have formed a cartel of sorts, buy turmeric only on credit, take away the goods, and pay only after they sell the goods.

The entire transaction takes about a fortnight, until when farmers await payment.

In the current system, which has been on for over a decade, both farmers as well as market committee employees are at risk: that of the traders defaulting on payment.

Risk

Market committee sources admit that they are under great risk when the allow traders to take away the goods.

However, there seems to be some hope for farmers like Ramasamy if the efforts initiated by the Collector, T. Udhyachandran, are anything to go by.

Sources at the market committee say the district administration has initiated efforts to streamline the payment system so that farmers get paid soon after the transaction.

They say the efforts are on to tie-up with banks.

Asked about the move, Mr. Udhayachandran says a system of traders' availing credit with banks to pay farmers immediately is under consideration.

While farmers will be paid immediately, traders, after they sell turmeric, will repay the bank with interest.

The collector, however, adds that the efforts are only in the initial stages and that it will take a while for the system to be implemented.

If and when the system materialises, it will help hundreds of farmers, who come from even neighbouring states with goods worth lakhs of rupees, to get cash instantly.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu