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An official investigation is being ordered into allegations of malpractices at turmeric mandis in Erode, which BusinessLine had exposed in an article on April 2.
The report had narrated the process by which traders’ cartels were preventing turmeric farmers from getting their due by manipulating prices and cheating on weighment.
Shunchonngam Jatak Chiru, Commissioner of Agri Marketing and Agri Business, Tamilnadu State Agricultural Marketing Board (TNSAMB), has said that an enquiry will be initiated into the alleged malpractices. He has written to L Kolandaivelu, Secretary, Erode Regulated Market Committee (RMC), asking him to respond to the allegations.
Kolandaivelu’s e-mail response to Jatak Chiru — which BusinessLine is privy to — does not challenge the claims made in the article. It is silent on traders getting to cancel bids by colluding with buyers.
Weak defence
However, citing the bye-laws of the Market Committee, the RMC defends — somewhat weakly — the practice of farmers being forced to pay weighment charges.
It says the weighmen and the seller/buyer jointly agree on the weighment charges, and the RMC doesn’t interfere; its responsibility is only to administer the amount collected.
Kolandaivelu’s response establishes that at the Semmam Palayam market, which is practically under the control of the turmeric traders and warehouse owners, a farmer pays ₹3 for weighment and ₹15 as loading charges per bag. At Perundurai, it is ₹5.35 and ₹13.65 respectively, adding up to ₹19 per bag. At the Erode Agricultural Producers Cooperative Marketing Society at Karungal Palayam, there is no weighment charge, but ₹15 per bag is collected for loading.
The letter concedes that though the buyer (trader) pays for just 65 kg turmeric per bag, every bag is filled with 66.5 kg — with 1 kg allowed for the gunny bag’s weight and 0.5 kg for ‘foreign particles’, . If the buyer feels there is more dirt, stones or other foreign particles, s/he asks for 67/68 kg per bag, which the weighmen comply with, effectively cheating the farmers.
The mail claims this is done with farmers’ approval, but BusinessLine ’s interactions at the market yard showed that small farmers’ voices don’t get heard. None of the mandis in Erode have provision for grading and assaying the produce.
Jatak Chiru said an enquiry will be set up to establish if traders get the leeway to unfairly withdraw bids.
Under the rules, only farmers have the right to cancel the trade if they are not satisfied with the price. “I am organising an awareness campaign; farmers are not required to pay anything to anyone. Weighment charges have to be paid only by the buyer,” he added.
Changes to come
All the regulated mandis will soon get electronic weighing machines, Jatak Chiru said.
Asked about assaying and grading facilities, he said, “The Centre provides funds through NABARD. All the 30 main markets and eight cooperative societies in the State have been approved funds of ₹3-5 crore each for grading and assaying infrastructure.”
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