Bombay HC relief for MahaFPC: Agency can now participate in govt procurement of onions

Last month, the state government had disqualified MahaFPC as a state-level agency. MahaFPC—the umbrella body of Farmer Producers Company (FPC) in Maharashtra–was barred by the NAFED from taking part in the procurement process for creation of 5 lakh tonne of buffer stock of onions. This decision of the state government had put the fate of 19 FPCs with over Rs 25 crores of investment at stake. The MahaFPC then moved the high court against this order.

“Considering the fact that on 6 th March 2024, the department itself appointed the petitioner as state level agency and in the backdrop of the fact that the complainant himself has been made a member of the enquiry committee, there shall be ad[1]interim relief in terms of prayer clause (a). However, the participation of the petitioner in the season 2023-2024 would be subject to outcome of writ petition as well as subject to outcome of the enquiry,” read the order.

Over the last few years, MahaFPC has been an active member in the farm gate procurement of onions. The federation has implemented the public private partnership model in onion procurement, where in scientifically built storage structures on field have allowed farmers a better alternative than the wholesale markets.

The decision to ban MahaFPC had put at risk 19 FPCs, which had invested heavily in structures and have loans to repay. The high court order comes as a relief for MahaFPC as government procuremtn is still an important part of the FPCs’ business model.