skip to content
Advertisement
Premium
This is an archive article published on April 12, 2024

MahaFPC debarred from govt procurement, 19 FPCs with over Rs 25 crores investment face bleak future

These FPCs are spread around the onion growing districts of Maharashtra and will not be able to participate in the buffer stock creation announced by the Central government to help onion growers in view of the ban on exports.

MahaFPC suspendedThe FPCs in question have collectively developed onion storage capacity of 19,000 tonnes. (File photo)

The state government’s decision to suspend MahaFPC — the umbrella body of farmer producer committees—from government procurement due to “pending enquiry” has put 19 FPCs in seven districts in a fix.

These FPCs are spread around the onion growing districts of Maharashtra and will not be able to participate in the buffer stock creation announced by the Central government to help onion growers in view of the ban on exports.

On Friday, during the procurement of onions by the National Agricultural Cooperative Marketing Federation (NAFED), MahaFPC was debarred from taking part in the tender process. This ban is expected to compound the problems of onion farmers who are already up in arms against the policies of the Central government.

Story continues below this ad

The FPCs in question have collectively developed onion storage capacity of 19,000 tonnes. The scientifically designed structure was developed as a joint venture between MahaFPC and the Nafed. Supposed to be the first-of-its-kind, these projects were Public-Private Partnership –Integrated Agriculture Development (PPP-IAD) project. The estimated cost of the project, which saw investment from the FPCs, NAFED as well as the state government, was Rs 21 crores.

But the 19 FPCs, which are members of MahaFPC, are barred from participating in government procurement announced last month. As wholesale onion prices tank, the central government announced procurement of 5 lakh tonnes of onion which would be done by NAFED and the National Consumers’ Cooperative Federation in equal tranches. They, in turn, sub-tender the work to state-level federations and the on-ground procurement is done by the member FPCs. The idea of this model is to bypass markets and ensure farm gate procurement.

In the financial year 2022-23, MahaFPC had procured onions worth Rs 34.01 crore and in the fiscal 2021-22, it procured onions worth Rs 68.66 crores. Last year, the MahaFPC had lodged an FIR against a member FPC which had allegedly carried out fraudulent activities in the procurement.

Last month, the state government debarred MahaFPC from all government procurement. The letter, which was seen by The Indian Express, has cited ongoing inquiries for alleged wrongdoings in 2022 against the body. MahaFPC has acknowledged the receipt of the letter. For the FPCs this marks a serious set back as many still rely on government procurement as their main business stay. “The whole idea was to ensure an alternate market was created- that now stands defeated,” said a member.

Story continues below this ad

Onion farmers across the state have protested against the Centre’s export ban, which they said has had a negative effect on their returns. In the onion belts , farmers have decided to teach the ruling party a lesson in the upcoming elections with Bharat Dighole, president of the Onion Growers Association, confirming the same.
MahaFPC officials said they have requested for interim relief so that their members can participate in the onion procurement process. “Our members would face economic hardship if a sudden ban is imposed,” said officials.

Friday’s decision, many FPCs said, would have an impact on their credit statement as their loans were sanctioned on the basis of government procurement model.

Partha Sarathi Biwas is an Assistant Editor with The Indian Express with 10+ years of experience in reporting on Agriculture, Commodities and Developmental issues. He has been with The Indian Express since 2011 and earlier worked with DNA. Partha's report about Farmers Producer Companies (FPC) as well long pieces on various agricultural issues have been cited by various academic publications including those published by the Government of India. He is often invited as a visiting faculty to various schools of journalism to talk about development journalism and rural reporting. In his spare time Partha trains for marathons and has participated in multiple marathons and half marathons. ... Read More


Click here to join Express Pune WhatsApp channel and get a curated list of our stories

Latest Comment
Post Comment
Read Comments
Advertisement

You May Like

Advertisement