Trust fund plan

A REVOLUTIONARY new plan by the Agriculture Ministry will result in the Agricultural Marketing Authority (AMA) establishing a farmer’s trust to generate funds for their planting and harvesting needs.

Agriculture Minister Dr Mahendra Reddy told a group of farmers in Nadarivatu earlier this week that 15 per cent of their net profits would go to the trust account.

“We will not give you cash in terms of payments (for produce),” he said.

“One of the requirements we want from the farmers is for them to open a bank account and we will directly deposit the money to their bank account.

“This is to ensure that we have a statement of what we had given and the farmer has evidence of how much they have in their account.

“In addition, if the farmer’s crop cost $1000, $850 will be the farmer’s money.

“We will keep $150 in the farmer’s trust account. “For the next planting season, the fertiliser needed by the farmer will be bought with the money in their trust accounts.

“The fertiliser will be bought and delivered to the farmer and they will be informed of how much they have left in their account.”

He said the new process would assist farmers prepare for the next planting season after a harvest.

“We are doing this so that the farmer does not have to look for money when they are planting potatoes.

“We will buy the materials that they need through the trust account set up by AMA.

“We can understand that it may be difficult for a farmer to save what they have earned from their harvest.

“So we will set up the trust account through AMA where 15 per cent will be kept aside for the purchase of these materials. The farmer keeps 85 per cent of the net profit.”