Firms Told To Compensate Farmers For Seed Failure

The Supreme Court held yesterday that a seed company was liable to pay compensation to farmers if the seeds failed to germinate. The court upheld the ruling of the district forum in Andhra Pradesh directing Maharashtra Hybrid Seeds Ltd to pay Rs 2,000 per acre to the farmers who bought sunflower seeds from it.

The farmers stated that they had sown the seeds supplied by the company on the recommendation of the local agricultural officer.

When the farmers complained to the officer, he visited the land and confirmed their grievance. He wrote to the company but none turned up. There was no denial of the fact that the farmers used the correct manure, there was proper rain and the soil was adequately prepared. There was negligence and deficiency of service on the part of the firm and it was liable to pay compensation under the Consumer Protection Act.

The company had argued that the consumer forum had no jurisdiction because complaints about seed were governed by the Seeds Act 1966 and the rules framed under it.

That Act provided for a remedy when complaints of such nature was received and therefore consumer forum should not award compensation.

This question was not dealt with by the courts below and the Supreme Court left the issue open.