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Why do Farmers Prefer Selling Their Produce at Adani Silos

Farmers prefer to sell wheat directly to FCI, but mandis must also provide alternate arrangements for guaranteed MSP, according to farmers.

Shruti Kandwal
Farmers going to sell their produce
Farmers going to sell their produce

Weighing, unloading, moisture measurement and online billing - the entire process takes approximately two hours providing farmers with hassle-free procurement at Adani Agri Logistics’ silo in Solumajra village in Kaithal.

The process is carried out using machines, and nearly 50 people monitor procurement to unloading operations at the silos, where 1,000 to 1,200 farmers sell their products directly to government procurement agencies on a daily basis.

Long lines of tractor-trolleys can be seen both inside and outside the facility, indicating that it is well received by farmers, who spend the entire day selling their produce in the APMCs or mandis, which remains flooded with grains throughout the harvest season.    

Government agencies are in charge of procurement at the silos, as the Food Corporation of India (FCI) has hired this facility for storage and transportation under a 20-year contract signed in 2007.

This year, farmers from nearby Kaithal and Kurukshetra districts were given the option of selling their produce directly at the silos, as the government has set a target of procuring 2.12 lakh MT directly. Farmers from Dhand and Pundri grain markets, however, are bringing their produce to silos because these mandis do not have procurement.

Haryana’s mandis appear deserted, but the movement of farmers from mandis to silos will not affect arhtiyas’ earnings because they will receive their commission while sitting in their shops, according to a state agriculture marketing board official.

Most farmers appreciated the arrangements at the silos and were aware that the procurement was handled by the government agencies. However, they continue to believe that the government is involving private companies in procurement in order to eliminate the mandi system, as predicted by farmer leaders during the farm agitation.

“We know the silos are procuring for the government,” said Charanjit Singh of Faral village. Farmers, on the other hand, are told on a daily basis to return their produce due to poor quality. On the other hand, the direct sale of food grains to silos has displaced thousands of migrant and local laborers associated with these mandis, particularly in Dhand and Pundri.

“During the harvest season, around 3,000 laborers used to get jobs in Dhand grain market for nearly two months, but now the mandi looks deserted because there is no procurement of wheat going on here,” said Kuldeep Singh, a bookkeeper at Dhand mandi.

According to officials, monitoring the procurement, 77 lakh MT of wheat has already arrived this year, and the arrival is expected to easily exceed 1 lakh MT as the arrival is still ongoing. Apart from saving lakhs of rupees on transportation, the government can save crores on gunny bags. 

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