HPMC charging above market rate for fertiliser: Apple growers

Subhash Rajta

Shimla, February 28

The Horticulture Produce Marketing and Processing Corporation (HPMC) is selling fertilisers, spray oils and farm equipment to them above the market rates, allege apple growers.

The HPMC sells these items to the farmers in lieu of the payments due towards them for the apple procured through the Market Intervention Scheme (MIS). “As the HPMC makes payments late and offers these items in lieu of the dues, the least it can do is price these items lower than the market rates,” says Harish Chauhan, an apple grower of Rohru. “The HPMC buys these products in bulk, so it can negotiate a discount on them and pass on the benefit to the farmers instead of overcharging them,” says an orchardist at Kotkhai.

The HPMC, however, cites own reasons for pricing these items “slightly higher than the market rates”. An HPMC official says that the corporation charges up to 10 per cent margin on any item it sells to the farmers. “The HPMC has limited income sources. We need to generate some income to stay afloat. Also, this margin includes handling charges like transport, loading, unloading,” he adds.

The official says that the corporation empanels companies by inviting bids instead of opting for L1 bidder to provide a greater choice to the farmers. “We have several companies providing one particular item. This gives farmers the choice to buy the product of the company of their preference. So, we are providing both variety and quality to our consumers on their doorsteps,” he adds.

He says that the HPMC not always prices these items higher than the market rates. “Until December 31 last year, we were selling calcium nitrate at a rate cheaper than dealers in the market. Now, we are selling the fresh stock that we got for Rs 1,450 and are offering it to the farmers for Rs 1,595, which includes a 10 per cent margin,” he adds. “The dealers in the market are selling calcium nitrate for around Rs 1,350 to Rs 1,400. They are able to sell it at a lower price because they have old stock. As a corporation with limited means, we can neither procure huge stocks nor hoard them,” he says.

Orchardists, however, are not convinced with this arguement. “Why should a government agency sell us something in lieu of payments due to us? Make full and timely payment to farmers, and then let them decide whether they want to buy items from the HPMC and Himfed or from the open market,” says Chauhan. “Why force farmers to buy higher-priced items by delaying their payments,” he adds.

Can’t hoard material

The dealers in the market are selling calcium nitrate for around Rs1,350 to Rs1,400, while we are providing it for Rs1,595. They are able to sell it at a lower price because they have old stock. As a corporation with limited means, we can neither procure huge stocks nor hoard them. — A HPMC official