Bengaluru, January 10: Reliance Retail Ltd, an arm of the RIL group, has reportedly inked a pact with Karnataka's Swasthya Farmers Producing Company (SFPC) for procuring rice from farmers in Raichur district. The company has agreed to pay above the minimum support price (MSP) set by the government for the crop. Farmers' Talks With Centre: No Headway in 8th Round of Meeting Over Farm Laws; Next Round of Talks on January 15.

The SFPC, as per the pact, would act as a intermediary between nearly 1,100 paddy farmers in Raichur district and Reliance Retail. The latter would purchase 1,000 quintals of Sona Masoori Paddy at a price of Rs 1,950 per quintal, reported TOI. The amount is Rs 82 higher than the MSP being offered by the government at APMCs.

The SFPC, which would supply the crop from the farmers to Reliance Retail, would charge a commission of Rs 1.5 from farmers for each Rs 100 transaction, the report said.

The amount would be paid by Reliance Retail following a third-party assessment of the rice quality. The payment to farmers would be credited directly into their bank accounts by SFPC, after the transaction with Reliance Retail is completed.

The deal assumes significance as it comes amid the ongoing farmers' protest at the Delhi borders, seeking rollback of the new farm laws that allow private purchasers to bypass the APMCs and directly procure crops from the farmers.

The protesters, led by an amalgam of nearly 40 agrarian unions, have alleged that the private players would initially offer a higher MSP, but the rates would decline after the APMCs are "dismantled".

(The above story first appeared on LatestLY on Jan 10, 2021 09:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).