Reliance Retail has made a big deal to purchase paddy from farmers at a price higher than MSP.
Reliance Retail, a subsidiary of Reliance Industries (RIL), has signed a deal to purchase 1,000 quintals of paddy from farmers in Karnataka. The company has offered farmers a price of Rs 1,950 per quintal for gold Mussoorie paddy, which is Rs 82 more than the Minimum Support Price (MSP).
- January 10, 2021, 9:54 PM IST
According to the agreement, the moisture in the crop should be less than 16%
Registered agents of Reliance Retail signed an agreement with Health Farmers Producing Company (SFPC) 2 weeks ago. Earlier, this company, which did only oil business, has now started the purchase and sale of paddy as well. About 1100 paddy farmers are registered with this company. According to the Reliance Retail agreement, the crop should have less than 16 percent moisture. The company has offered a price of Rs 1,950 per quintal for gold Mussoorie, which is Rs 82 more than the MSP fixed by the government. Explain that the government purchase has been made at the rate of Rs 1,868 per quintal.
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As per the agreement between SFPC and the farmers, the company will get a commission of 1.5 per cent for every Rs 100 transaction. Farmers will have to bear the transportation expenses to the warehouse of Sindhnore itself along with the sacks to pack the crop. SFPC Managing Director Mallikarjun Valkaladinni said that the third party will test the quality of the paddy kept in the warehouse. Once satisfied with the quality, the agents of Reliance will provide space to the crop. Presently, 500 quintals of paddy are kept in the warehouse. After purchase, Reliance will pay online to SFPC. After this, SFPC will deposit the money directly into the farmers’ account.
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