ITC refutes MP mandi traders' charges

ITC has objected to the allegations of the Madhya Pradesh Anaj Dalhan Tilhan Vyapari Mahasangh that the Madhya Pradesh government had amended the Mandi Act, 1970, in the company's favour.

Company vice-president Rajnikant Rai said ITC was formed in 1910 and was promoted entirely by Indian stakeholders. Mandi traders, he said, were carrying on a false campaign.

Traders of 230 mandis in the state are on an indefinite strike. The strike has directly and indirectly affected at least 2 million people.

ITC has objected to calling the firm a "multinational company". Despite Madhya Pradesh chief minister Babulal Gaur's intervention, there has been no breakthrough in mandi traders' strike.

"We cannot ask farmers to sell their commodities only to mandi traders. They are free to sell to chaupals, private companies, mandi traders, or anyone else. The BJP will take decision in the interests of farmers and not in the interests of a particular business community," Gaur told mediapersons on Saturday.

Rai said anyone can obtain a licence from mandi samitis by paying Rs 10,000 for setting up purchase centres outside mandis.

"This was such a provision in the 1970 Act. Elected bodies govern mandi samitis, and traders and farmers represent them. Why do mandi samitis not cancel ITC's licence," Rai asked.

ITC has also rejected the demand of Radheshayam Maheshwari, general secretary of the Madhya Pradesh Anaj Dalhan Avam Tilhan Sangh, that the firm should participate in open auction.

Rai said, "We felt a need to start purchase centres since mandis had neither arrangements for farmers nor for the participants, and the cost of trade was increasing. We disclose commodity rates one day prior to purchase at our procurement centres, and traders do not like that. If they want healthy competition, they should bid higher prices for similar commodities and quantities."

Rai said, "More than 9,000 farmers have rallied behind us. It indicates mandis have no proper arrangement for them and they support the choupal system, where information regarding weather, prices, other commodities is available."

However, he said the firm sought a single licence for all procurement centres for the entire state. The state government has not issued licences for any company so far.

ITC has obtained 42 licences to procure grains outside mandis from farmers. Traders have called a state bandh on December 20. According to government sources, the mandi board had a meeting with traders, but to no avail.

"We will call off the strike once the open licence to procure commodities for private companies is cancelled. They should be asked to participate in open auction. We also discussed the issue with mandi board officials but there was no outcome," said Maheswari.