BKS floats company to ensure minimum support price for farmers

The company, Maha Gujarat Agri Cotton Private Limited (MGACPL), with only farmers on the board, also plans to enter processing and ginning operations later on.

Having an initial share of Rs 10 crore, MGACPL will begin operations within a week by becoming an agency for the Cotton Corporation of India (CCI).

To begin with, the BKS Gujarat aims to ensure that the MSP benefits are made available to every farmer even in the remotest areas. Given the limited outlets of the CCI, MGACPL will open outlets in every taluka of the state.

In the current year, the CCI purchases cotton with an MSP of Rs 575 per 20 kg. However, the CCI could open outlets at limited centres and the farmers get paid only after 10 days of the deal.

“Many farmers, especially in remote talukas, have to sell cotton below the MSP, as the CCI has presence in selected taulkas (in Rajkot, Amreli and Bhavnagar districts). Besides, there are many farmers who cannot wait for 10 days to get the payment. So, they are compelled to accept prices less than the MSP,” said BKS president Praful Sanjelia.

He added that the registration process would end in a day or two, and by the end of the week, they hope to complete the procedure to become the purchasing agency of the CCI.

The MGACPL, with head office in Ahmedabad, has 10 founding directors on its board, who are office bearers in different districts of the state.

Any person who owns agriculture land can become shareholder of this company.

However, it is mandatory for a member to buy shares worth at least Rs 1,000. According to the BKS, currently they have at least 300 members from each taluka.