The farmers are also angry over traders refusing to pay in cash citing possible trouble from Income Tax authorities. This has forced the government to clarify that traders should pay up to Rs 50,000 in cash to farmers rather than insisting on electronic payment. Marginal farmers can’t wait for cash to be deposited in their accounts, and need money to buy seeds, fertilisers and for daily needs.
Till October 15, more than 16 lakh farmers had registered themselves under BBY scheme for eight notified crops – soybean, maize, groundnut, sesame (til), urad, moong, tur and ramtil (nigerseed).
The first purchases under the scheme were made on October 16. The trouble arose after prices of soybean and urad crashed. News soon spread that traders had formed cartels to ensure these didn’t cross a certain level. Traders hope to buy at low prices to sell at higher rates later, and also mislead farmers by telling them they will get the entire difference from the government between the selling price and MSP, which is not the case.
Soybean, for example, is fetching much less than the MSP of Rs 3,050 per quintal, even though the production estimates have been revised downwards. Traders claim the quality of soybean is bad, resulting in less demand. Urad’s prices, on the other hand, have been affected due to bumper production.