Around 40 Yadgir Farmers Left Waiting for ₹1.93 Crore After Paddy Sale
Around 40 paddy farmers from Baichbal, Karadkal and Kudalagi villages in Hunasagi taluk faced financial distress after a merchant allegedly failed to pay them for paddy purchased from their farms.
According to a report published in February 2026, the merchant had purchased 12,921 packets of paddy valued at approximately ₹1.93 crore from farmers and allegedly failed to make the promised payments. The paddy was reportedly transported in around 35 lorries.
The farmers said they had trusted the merchant because he had reportedly purchased their produce in previous years and made payments on time. This history of business reportedly encouraged farmers to sell their latest harvest to him.
However, after purchasing the paddy, the merchant allegedly became unavailable. Farmers reportedly waited for the promised payments and eventually approached authorities after failing to locate him.
An FIR was reportedly registered on February 2, and farmers later met the Additional Superintendent of Police in Yadgir to submit their concerns. Kemmbhavi police began investigating the case.
Farmer-Market Risk
The incident highlights one of the major challenges faced by agricultural communities: producing a crop is only one part of the farming process. Farmers must also receive reliable payment after selling their produce.
When payments are delayed or withheld, farmers can struggle to repay crop loans, pay labourers, purchase inputs for the next season and meet household expenses.
The case also demonstrates why farmers should maintain written records, invoices, weighing details and payment documentation when selling large quantities of agricultural produce.
Need for Reliable Market Systems
Farmer-producer organisations, regulated markets and transparent digital payment systems can help reduce some of the risks associated with informal transactions.
The investigation into the Yadgir case is expected to determine the facts and responsibility. Allegations against the merchant remain subject to the legal process.
For local farmers, the incident serves as a reminder of the importance of verifying buyers and maintaining complete transaction records.
Key Highlights
- Around 40 farmers were reportedly affected.
- Farmers came from three villages in Hunasagi taluk.
- 12,921 paddy packets were reportedly purchased.
- Produce was valued at approximately ₹1.93 crore.
- Kemmbhavi police initiated an investigation.