Promise to purchase produce from farmers must be kept

JCI alleged that the complaint had been filed merely to avoid repayment of the loan taken against the value of the jute.

Krishna Barman and some other farmers had stored their stock of jute at Bhartiya Gramin Bhandar in Bhetaguri, and had pledged it for availing a loan of Rs 50,000, which was equivalent to 60 per cent of its value. A memo issued by the Jute Corporation of India (JCI) mentioned that this stock would be purchased at amounts ranging from Rs 3,800 to Rs 4,200 per quintal. JCI would in turn sell the jute procured from the farmers.

The Corporation later refused to purchase the stock at the agreed rate of Rs 3,800 to Rs 4,200 per quintal, contending that the