Farmers in Nabha Stage Road Blockade Over Alleged Contract Farming Fraud
Tension gripped Nabha town in Patiala district on Monday as a group of farmers staged a brief road blockade, accusing a Uttar Pradesh-based agricultural company of fraudulent practices in a contract-farming arrangement. The farmers alleged the firm reneged on written agreements to procure potatoes at a guaranteed rate of Rs 10 per kilogram, leaving them in financial distress.
Details of the Alleged Fraudulent Agreement
The farmers reported that the company supplied potato seeds of its choice and entered into formal written contracts, promising to purchase the harvested crop at the fixed price of Rs 10 per kg. However, when the produce was brought for procurement, the company allegedly declined to accept it. According to the aggrieved cultivators, the local intermediary who initially connected them with the company is now buying the same potatoes at significantly reduced prices of Rs 4 to Rs 4.5 per kg.
Nirmal Singh, a farmer from Narmana village, shared his experience, stating that his contract covered 1,200 sacks of potatoes. He claimed the company purchased only 600 sacks before rejecting the remaining produce from the same field on what he described as "unjustified grounds." Singh explained, "The company supplied us the seeds at Rs 2,500 per bag of 45kg and contracted for procurement at Rs 10 per kg of potato, but now they are rejecting it as they knew there's a glut in the market and farmers don't have much option than to sell at lower prices. We had sown the crop around three months ago."
Widespread Impact and Farmer Grievances
Another farmer, Malkeet Singh from Phammalwal village, reported that the company supplied seeds at Rs 52 per kg but is now refusing to accept the harvested crop and returning it. The farmers expressed frustration that they were drawn into the arrangement through intermediaries and are now being compelled to sell their produce back to the same middlemen at distress prices.
They warned that such exploitative practices are pushing cultivators into severe financial hardship, undermining their livelihoods and trust in contract farming systems. The agreement documents shown by the farmers were written in Hindi, adding to concerns about transparency and understanding.
Farmers' Union Demands and Police Response
Daljinder Singh Gurna, a farmer leader of the Bharatiya Kisan Union (Dakaunda), highlighted the scale of the issue, revealing that nearly 800 farmers are waiting for their crop to be procured. He called for immediate intervention by authorities to address the alleged fraud and protect farmers' interests.
In response, Nabha DSP Gurinder Singh Bal confirmed that police have initiated an inquiry into the matter. He stated that efforts are underway to contact representatives of the Uttar Pradesh-based company, and appropriate legal action will be taken based on the findings of the investigation. The police are working to mediate the dispute and ensure justice for the affected farmers.
The incident has sparked broader concerns about the reliability of contract farming agreements and the need for stronger regulatory oversight to prevent such alleged fraudulent activities in the agricultural sector.
