RAMESH CHANDRA LAHOTI Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE appeals are directed against the common order of the learned Single Judge dated 4-11-2004 dismissing the writ petitions in writ petition No. 18095/2004 and connected matters.

(2.) AGIRCULTURE is a way of life, a tradition, which for centuries, has shaped the thought, the outlook, the culture and the economic life of the people of India. Indian agriculture has since independence, made rapid strides. In taking the annual foodgrains production from 51 million tonnes of early fifties to 206 million tonnes at the turn of the century. The use of increased agricultural inputs like hybrid variety seeds, fertilizers, pesticides, fungicides, agricultural machinery, fossil fuel, electrical power etc. , pushed the cost of production, up during the last three decades. The increased cost of production has led to increased indebtedness among farmers and they are in the trap of debt. This phenomenon resulted in distress sale of farm product. Distress sale means, selling the product for lesser price than the real cost of production and in economic terms, it is called 'deflation'. Factors like deflation, crunch in rural credit, lack of post harvest processing and storage facility etc. , resulted in farmers committing suicide. It is in this critical situation the State intervention is deemed essential to protect the interest of both producers and consumers and to maintain reasonable stability in the prices.

(3.) IT is in this background the Government of Karnataka in the Budget speech for the year 1998-99 on the floor of the House announced to formulate a Scheme to go to the aid of farmers who are facing distress sale. Consequently, the Government vide notification dated 24. 11. 1999 formulated a Scheme called "floor Price Scheme for Agricultural / Horticultural Commodities in karnataka" (the 'scheme' for short ). The preamble of the scheme reads as under: