April 7, 2021

Government insists on land records for online payment of MSP to farmers

Agriculture: Farmer and arhtiya (commission agent) unions from Punjab have launched protests against an order issued by the Food Corporation of India (FCI), which seeks land records of farmers for online payment of the minimum support price (MSP) directly into their bank accounts.

The FCI’s northern zonal office in Noida has sought land records of farmers, citing that this is mandatory if farmers are to receive direct online payments of MSP for wheat in the upcoming Rabi Marketing Season (RMS). Land records need to be updated on the Anaaj Kharid Portal before commencement of RMS 2021-22 so that the FCI can verify them.

While farmers are worried that the FCI’s insistence on direct payment and tenancy documentation could derail the crop procurement process and leave out many from getting a fair price for their crop, arhtiyas feel that they will not be able to avail their 2.5 percent commission on crop sales. (Arhtiyas facilitate the procurement of crops from farmers to government agencies, and charge commission for this service).

Ravinder Cheema, President, Punjab Arhtiya Association, said that they plan to call a meeting of the arhtiyas in Punjab, to develop a plan of action and go on strike. They also plan to stop the procurement of wheat from the coming season.

Listen to this discussion between former Agriculture Secretary Siraj Hussain and the leader of a farmer collective, Kavitha Kuruganti on the ongoing farmer protests, dissent, and the process of consultation and policy reform in India.


May 20, 2021

Home Ministry extends validity period of FCRA registration certificates

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.


May 20, 2021

Corporate spending on oxygen support and medical equipment now counts as CSR

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.