Against the grain: Spurious seeds and middlemen trigger debt crisis in Gadwal; farmers lose land
JOGULAMBA GADWAL: As if India's known reasons for farm distress of dependence on erratic rainfall, shrinking farm holdings, lack of organised credit and unexpected collapse in the prices were not enough, there is now an addition to the list - spurious and substandard seeds .
Cottonseed farmers that TOI spoke to in Telangana's Jogulamba Gadwal district allege that middlemen are virtually triggering a debt crisis by first lending money to buy seed from them.
These seeds are often substandard in quality, causing the crop to fail. Using this vulnerable situation, the middlemen then force farmers to transfer their lands to them as repayment for the loan.
In one instance, the Wadde family of three brothers had borrowed Rs 8.15 lakh for cottonseed farming. When the crop failed because of substandard seeds, the middleman forced them into transferring their seven acres to him. In turn, the middleman sold the land and pocketed over Rs 1 crore.
While the Waddes have already lost their ancestral land, many other families are under similar pressure to give up their farms.
Their loans range between Rs 1 lakh and Rs 5 lakh, mostly taken from the middlemen to start seed cultivation.
Farmers demand action against seed companies & middlemen for losses
Brothers Wadde Parasuramudu, Ramudu, and Lakshman from Bingidoddi village, alleged that the middleman, also known as 'organiser' in Telangana, refused to take the borrowed money back, even when the family was able to arrange for the cash.
The issue came to light when TOI visited their village while investigating growing instances of the supply of spurious seeds in Gadwal and other parts of the state. The farmers in the region had approached the Telangana Agriculture and Farmers Welfare Commission against the middlemen and seed companies, seeking compensation for the huge losses they had suffered because of the substandard seeds.
"All I know is seed farming," a teary-eyed Parasuramudu, aged 38, told TOI. "I have been doing this since I was 18. To cultivate the land, we borrowed some money from the organiser and blindly trusted him. And now, we have lost everything."
His mother, 80-year-old Balamma, said, "Our farm is hardly 1.5 km away, but my sons are forced to work as labourers now. We are not even allowed to enter the land." The family alleged they were cheated and had nowhere to go.
They are also fighting a case filed against them for threatening and trespassing for trying to enter the land, which they believe still belongs to them. Other farmers told TOI that spurious seeds had been supplied to them for years now. But the losses were exceptionally high this year, forcing them to approach district officials and the commission.
"I was told that my produce failed quality tests and the company refused to take the produce," said K Anjaneyulu from Maldakal village, adding that he even raised the issue with the district officials. "I don't understand how I can be blamed as the seed is supplied by the seed company. Now, my organiser is pressuring me either to return the money or register my two-acre land in his name."
Another farmer, Balla Hanumanu, who also worked as a sub-organiser, said that he lost nine acres to another middleman. Kuruva Vijay Kumar, BRS leader, who raised the seed farmers' issue with govt officials, said many farmers in Gadwal lost their lands to middlemen.
"Companies give money to middlemen to lend to farmers at zero interest. However, this money is extended to farmers for interest and pushing them into debt. Using these debts as an excuse, middlemen are snatching away farmers' lands," he said.
"We received many complaints from farmers, who lost their lands to middlemen, after borrowing money for cultivation, pesticides, or fertilisers on interest," said KVN Reddy, a member of the commission, adding that they are trying to make seed companies pay farmers.
Cottonseed farmers that TOI spoke to in Telangana's Jogulamba Gadwal district allege that middlemen are virtually triggering a debt crisis by first lending money to buy seed from them.
These seeds are often substandard in quality, causing the crop to fail. Using this vulnerable situation, the middlemen then force farmers to transfer their lands to them as repayment for the loan.
In one instance, the Wadde family of three brothers had borrowed Rs 8.15 lakh for cottonseed farming. When the crop failed because of substandard seeds, the middleman forced them into transferring their seven acres to him. In turn, the middleman sold the land and pocketed over Rs 1 crore.
While the Waddes have already lost their ancestral land, many other families are under similar pressure to give up their farms.
Their loans range between Rs 1 lakh and Rs 5 lakh, mostly taken from the middlemen to start seed cultivation.
Farmers demand action against seed companies & middlemen for losses
Brothers Wadde Parasuramudu, Ramudu, and Lakshman from Bingidoddi village, alleged that the middleman, also known as 'organiser' in Telangana, refused to take the borrowed money back, even when the family was able to arrange for the cash.
The issue came to light when TOI visited their village while investigating growing instances of the supply of spurious seeds in Gadwal and other parts of the state. The farmers in the region had approached the Telangana Agriculture and Farmers Welfare Commission against the middlemen and seed companies, seeking compensation for the huge losses they had suffered because of the substandard seeds.
"All I know is seed farming," a teary-eyed Parasuramudu, aged 38, told TOI. "I have been doing this since I was 18. To cultivate the land, we borrowed some money from the organiser and blindly trusted him. And now, we have lost everything."
His mother, 80-year-old Balamma, said, "Our farm is hardly 1.5 km away, but my sons are forced to work as labourers now. We are not even allowed to enter the land." The family alleged they were cheated and had nowhere to go.
They are also fighting a case filed against them for threatening and trespassing for trying to enter the land, which they believe still belongs to them. Other farmers told TOI that spurious seeds had been supplied to them for years now. But the losses were exceptionally high this year, forcing them to approach district officials and the commission.
"I was told that my produce failed quality tests and the company refused to take the produce," said K Anjaneyulu from Maldakal village, adding that he even raised the issue with the district officials. "I don't understand how I can be blamed as the seed is supplied by the seed company. Now, my organiser is pressuring me either to return the money or register my two-acre land in his name."
Another farmer, Balla Hanumanu, who also worked as a sub-organiser, said that he lost nine acres to another middleman. Kuruva Vijay Kumar, BRS leader, who raised the seed farmers' issue with govt officials, said many farmers in Gadwal lost their lands to middlemen.
"Companies give money to middlemen to lend to farmers at zero interest. However, this money is extended to farmers for interest and pushing them into debt. Using these debts as an excuse, middlemen are snatching away farmers' lands," he said.
"We received many complaints from farmers, who lost their lands to middlemen, after borrowing money for cultivation, pesticides, or fertilisers on interest," said KVN Reddy, a member of the commission, adding that they are trying to make seed companies pay farmers.
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