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Firm Fined Rs 25,000 Under New Farm Law for Delaying Payment to Farmers in MP's Jabalpur

Representative image. (Reuters)

Representative image. (Reuters)

The matter came to the fore during an inspection by SDM Ashish Pandey in the Patan tehsil. It emerged that a registered firm Shiv Shakti Traders had bought 3400 sacks of paddy outside the mandi but didn’t make payment.

As the farm laws have become a topic of contest between farmers and the Centre, the Madhya Pradesh government is busy ensuing justice to farmers under the new provisions. A sub-divisional magistrate on Tuesday imposed a fine of Rs 25,000 on a private firm for delaying payments of farmers in Jabalpur’s Patan tehsil under the new law.

The action was taken under section 4 of Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 as the trader could not make payment within the set time frame.

The matter came to the fore during an inspection by SDM Ashish Pandey in the mandi campus of Patan tehsil. It emerged that a registered firm Shiv Shakti Traders had bought 3400 sacks of paddy outside the mandi but didn’t make payment. The officer summoned a report and found the complaint to be true.

The officer in no time issued an order, instructing the firm to release payments. Accordingly, the firm then transferred Rs 22.46 lakh in the accounts of farmers through online transaction within 24 hours of the order. The SDM also slapped a fine of Rs 25,000 on the private firm form deceiving farmers.

It was the first case where any government officer had penalised a private firm with penalty. The district administration in Hoshangabad, few days ago, had made a private firm pay the highest amount for paddy crop to farmers as per an agreement inked by the peasants and the private firm based in New Delhi.

The district administration on Monday had attached properties of a trader for delaying payments of farmers in Gwalior. The trader is at large after buying crops from some of the local farmers in Gwalior.

Chief Minister Shivraj Singh Chouhan on Monday had claimed on Twitter that eight Lanjhi (Balaghat) farmers have raised a complaint of a rice mill owner stalling payments of Rs 4.2 lakh and the said firm has been asked to furnish a reply by Tuesday. “If the firm, fails to submit a reply, ex-parte action will be ensured in favour of farmers,” Chouhan had said.