Amid Controversy And Protests, Adani Group Says They Do Not Buy Food Grains From Farmers

Ever since the new farm laws were passed, which will enable private players to buy food grains directly from farmers were being discussed, a large section of those opposed to it has been alleging that the changes are being made to certain companies.

In particular, they had named the Mukesh Ambani-backed Reliance Group and Gautam Adani's Adani Group.

BCCL

The two corporate behemoths which are known to be close to the ruling BJP have agribusiness in their portfolios along with several others.

The Adani Group has been singled out by a lot of protesters and many on social media.

AFP

They alleged that the Ahmedabad-based company has registered several Agri based companies in 2019.

Was Adani preparing for the Bill's as he had raised so many Agro based Companies since one year pic.twitter.com/EWQ3hU21ry

¡ª Brigadier A K Jairath, Retd (@KWecare) December 8, 2020

Who is going to benefit from Anti Farmer Bills?
The answer is here: Corporates like Adani who have huge agro logistics firms.
20 out of 22 Adani agro logistics firms were set up during Modi Rule.
A Govt only for the corporates!#?????_??_????_??????, #?????_???????_???????! pic.twitter.com/kvGhNRDsyz

¡ª CPI (M) (@cpimspeak) December 10, 2020

Under fire, the Adani group has issued a clarification stating that it neither buys food grains from farmers nor decides the pricing of food grains.

"The company has no role in deciding the volume of storage as well as pricing of grain as it only a service/ infrastructure provider for the FCI," it said in a statement posted on its Twitter handle.

BCCL

FCI buys food grains from farmers and stores them in silos built through a public-private partnership. While private players are paid a fee for building and storing the food grains, the ownership of the commodity as well as its marketing and distribution rights, belong to FCI.

#FakeNewsAlert

Our statement in response to the misleading video posted by the Loktantra TV YouTube channel that is leveraging the ongoing farmer crisis in order to malign our reputation and misguide public opinion. #FakeNews pic.twitter.com/k4eeEGTpHa

¡ª Adani Group (@AdaniOnline) December 8, 2020

FCI, it said, controls the procurement and movement of food grains for the Public Distribution System (PDS).

Some farm groups have alleged that the Adani group is building grain storage facilities for hoarding food grains and selling them at a higher price later.

"We do not own any food grains procured from farmers, and are in no way connected to the pricing of grains," it said.

Adani Group said it is in the business of developing and operating grain silos for FCI since 2005. It sets up storage infrastructure after winning competitive and transparent tender by the Government of India.

BCCL

Private rail lines that it built as part of these tenders are to facilitate the movement of grains from silo units to their distribution centres across India, the statement said.

FCI, it said, awarded such contracts with a view to modernising the storage and transport infrastructure in the country so that food grains could be safely stored and quality stuff is supplied to the PDS system.

"Using ongoing issues for mudslinging is a clear attempt to not only tarnish the reputation of a responsible corporate but also misguide public opinion and hurt their sentiment," Adani Group said.

FCI has partnered with private investors to commission high tech silos equipped with latest fumigation and preservation techniques for food grains for two to four years and dispatch it in bulk form through special trains across India.