Bhopal: Deciding against waiting in the long queue at the Neemuch mandi, Ramlal Patidar, a farmer from Madhya Pradesh, sold his 30 quintal maize directly to a registered mandi trader, Anil Goyal, at Rs 1,650 per quintal. This sale took place metres away from the mandi through the Souda Patrak app, launched by the State Mandi Board in June this year.
It was a win-win deal for Patidar and Goyal. While the former received the payment in hand, the latter was able to transfer the 1.7% of total trade as mandi fee to the Mandi Board online, without a delay.
Patidar is among the 3,17,865 farmers who have sold their crops outside the mandi using Souda Patrak app since April 1, 2021.
‘Souda patrak‘ was the receipt given to traders after they purchased farm produce in the mandi before the COVID-19 lockdown. But during the lockdown, when mandis were closed, the Mandi Board took started a new initiative with the same name, allowing registered mandi traders to purchase farm produce from farmers’ doorsteps at the minimum support price (MSP). Subsequently, traders are meant to fill up the receipt themselves and deposit the 1.7% mandi tax.
After the initial success of the programme, the Mandi Board launched the Souda Patrak App in June this year, cutting down on paperwork. According to data from the Mandi Board, by November 15, 14.87 lakh tonnes of crops have been purchased through the app – amounting to 16.17% of this year’s total trade.
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“With the help of technology, we are trying to give more options to traders and farmers to do business legally outside the mandis. Souda Patrak is one of them,” said Vikas Narwal, managing director of the State Mandi Board. “Now, with the help of the app, traders can purchase crops not only outside the mandi but also inside the mandi without any hassle.”
Out of the state’s seven divisions, Indore is leading with the highest number of Souda Patrak transactions at 1,28,956, followed by Jabalpur with 50,409 and Ujjain with 40,329 trades between April 1 and October 31. “Out of 3.17 lakh trade deals using the Souda Patrak App by October 31, payments for 3.10 lakh were completed. The success rate is over 90%,” Narwal pointed out.
The 259 mandis and 298 sub-mandis in the state – which were affected both by the COVID-19 second wave and the Union government’s now-repealed farm laws – are now showing signs of recovery. Out of seven divisions, mandis in Bhopal, Gwalior and Ujjain divisions are still incurring losses between -15% to -24%. But two other divisions – Rewa and Jabalpur – have seen a massive surge in sales (54% and 18%, respectively) in comparison to the previous year.
According to a NewsClick report from December 7, 2020, the farm laws had paralysed over 70% of the mandis out of 259, according to official figures in the State Mandi Board’s E-Anugya portal. The 298 sub-mandis which run seasonally had recorded zero business from June 2020 to November 2020.
Traders applaud new moves
The traders’ association has applauded the Mandi Board’s new initiatives. Many of the traders claimed that initiatives like Souda Patrak App and E-Anugya portal, which was launched in 2019, have made mandi trading smoother and ushered in transparency. E-Anugya is an online platform from where traders can generate no-objection certificates to move their purchased grains out of the mandi. This was earlier done by mandi officials.
Pipariya mandi in Hoshangabad district. Photo: Kashif Kakvi
Indore-based mandi trader Nilesh Kala said, “Our mandis are governed by almost four-decades-old laws, which do not fit into the era of technology. Now, we can trade in the middle of the night and subsequently make payments not only to the farmers but also to the Mandi Board.”
“But a lot of changes should be made in order to increase the trade in mandis. The government should introduce a single license to access all mandis of the state instead of the prevailing one mandi, one trade license,” he said.
Another trader registered in the Neemuch mandi, Anil Goyal, said, “The payment gateway of Souda Patrak should be more efficient. It often reports failed transactions, putting us in a difficult situation.”
“To avoid paperwork and time, many traders who used to enter into pacts with farmers and purchase their grains outside the mandis without paying mandi fee are now making a fair deal with the help of this app,” he added.
Farmers’ leaders want loopholes fixed, demand MSP
The new initiatives, however, did not go down well with the farmers’ leaders.
They said that the flaws in the Souda Patrak App need to be fixed, as it does not guarantee purchase of grain at the MSP and promotes the one seller and one buyer tradition.
Farmers’ leader Kedar Sirohi said, “When farmers brought their crops to mandis, officials auctioned it and the highest bidder got the crop. Mandi officials secure the payment to farmers within stipulated time and ensure a fair deal. But Souda Patrak comes with zero accountability of a fair deal and MSP.”
He further said, “Souda Patrak may increase revenue to the mandis but it’s not the best possible way to benefit farmers.”
Badal Saroj of the All India Kisan Sabha claimed that Souda Patrak is the mild version of the Union government’s farm laws, which allows the sale and purchase of crops outside the mandi with zero guarantee of MSP and accountability.
“What if a trader purchases 20 tonnes and shows 10 tonnes in the app. Is there any mechanism to check? Besides, farmers get better rates in mandis because the rates fluctuate on a daily basis based on the quality of crops. Above all, MSP is the key and Souda Patrak does not guarantee it.”
“We are not against the new initiatives, but farmers should not be harassed under the garb of reform,” Saroj added.
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Replying to this, Mandi Board MD Narwal said, “The board has created a flying squad to keep an eye on the traders and other wrongdoings, and it has imposed fines of over Rs 5 crore in the last couple of months.”
Narwal further said, “In the next six months, the Board will launch the ‘MP Farm Gate’ app, a unified platform to sell and purchase crops by maintaining quality and MSP without coming to the mandis. It will have a database of farmers in addition to traders.”
Kashif Kakvi is a Delhi-based journalist who reports on Madhya Pradesh. He tweets @KashifKakvi.