New farm laws of Modi govt comes in handy for farmer, sues traders for delay in payment and recovers full amount

A maize grower from Maharashtra named Jitendra Bhoi used the provisions under the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 and sued two traders who did not pay him within the stipulated three days payment window as mandated.

Bhoi, who is a farmer in the Congress-ruled state of Maharastra was able to recover his due amounts from them worth Rs 2,85,000, Hindustan Times reports.

Bhoi, who is a farmer from Bhatane village of Shirpur tehsil in Dhule district, cultivated the maize crop and sold it two dealers, Subhash Vani and Arun Vani, belonging to Khetia village in Madhya Pradesh’s Barwani district.

The farmer traded his produce of 270.95 quintals at a cost of Rs 1,240 per quintal with the total amount of the transaction was set to be Rs 3,32,617. The buyer then made a token payment of Rs 25,000 with an agreement to clear the outstanding dues within 15 days.

However, even after four months, the remainder payment was not cleared and that led Bhoi approached the concerned authorities in the first week of October.

“A clerk I know in the local market alerted me to this provision in new laws brought by the government. He said traders must now pay within three days. I then decided to file a complaint,” HT quoted the cultivator.

The authorities promptly acted and send a summons to the buyers and realising possible arrest and criminal action, the buyers settled the total amount, though lesser than the original agreement, which the traders paid in two instalments. The case was closed on 4 November.

“After studying the case, listening to the farmer, and going through documents, it has been ordered by me that the buyers must make immediate payments owed to the farmer,” the magistrate’s closure report stated.