Over uncountable years, India has been producing large scale employment in the agricultural sector. Though agriculture is the oldest profession in India, yet there are very less models or the systems to incorporate better remunerative measures for the farmers or to make the processes easier. In the recent years, to bridge the gap between the farm or the field produce and its deserved market, the concept of contract farming in India has been developed.
In the most scientific terms, contract farming is described as a method of farming where in the farmers enter a contract or a deal with the buyers and accordingly, they produce the required variety of crops. In a way, this concept of farming keeps in mind the four important dimensions, namely – the pre agreed contract, the quantity of the crop, the quality of the crop and the stipulated time period.
In this method of farming, the farmers are provided with all the required inputs and also all the desired technical support. For this farming process, various multinational companies have taken part in this domain and act as the contractors. Here in, we have brought to you a group of companies which have helped to boost the agricultural produce by this contract farming method.
The 2 leading contractors available in contract farming in India
1. Pepsi Foods Limited
This grand multinational company entered into the domain of boosting agricultural produce in 1989. They helped in the growth of tomato processing plants in the Hoshiarpur district of Punjab. They had invested a huge sum of 22 crores. The main reason behind this contract was to produce and pack the tomato puree and tomato paste. The contract also involved the packaging and the subsequent exporting processes. This company has extended its limits to places like Karnataka’s Neelamangala to grow intensive yields of chilli.
All the more, the benefits of contract farming by Pepsi co. Limited has been extended to Uttar Pradesh and Rajasthan as well to grow groundnuts. It is needless to mention that the reach of the company in the arena of technical support and of course in the domain of scientific research is high. With the implementation of plastic mulch groundnut technology, the company has been able to raise two crops per year. Once being labelled as the kharif crop and the other being called the Rabi crop. With the help of this method of contract farming, the yield of the crops have also substantially increased.
On an average, the fields could raise 1 ton of crops per hectare but by this method, each hectare could grow 3 tons to 4 tons of crops on the early trial itself. Obviously, with the increase in the crop production, the profit margin for the companies and the remunerative measures of the farmers has been ameliorated a great deal. This method of contract farming has invariably brought into the foray some of the key dynamics of this concept. Likewise, this method involves a thorough involvement with local markets and also with the large scale government enterprises.
This farming method has introduced ‘Quota Slips’ to understand and keep a regular check on the mature crops which are to be procured from each and every contracted farmer. With the proper distribution of the farming oriented tools from time to time, the contractor distributes the wages to the farmers on regular basis as well with the help of computerized receipts.
2. Appachi cotton company
As the name suggests, this company deals in the extensive growth of cotton. This is the only leading private enterprise which over the years has not only catered to the varied needs of the domestic and foreign textile industries but has also equally catered to the farmers. This contract farming is based in Tamil Nadu. The benefits from this contract was huge and diverse.
Likewise, this company provides services like to transport organic fertilizers and pesticides to the individual farms of the individuals without any cost, the farmers are provided with the best quality of seeds and the farmers who belong to the Self help groups are given Rs 8000 per acre as a crop loan with a 12 % interest (per annum). The best available benefit of this farming contract is that the farmers are not heckled by the pre fixed prices.
Owing to the hovering uncertainty which is attached to cash crops like cotton, the idea of not imposing pre fixed prices is indeed a great relief to the farmers. Apart from the areas of Coimbatore, this method is being extended to Theni and Namakka districts of Tamil Nadu as well. This farming method has brought into light, various types of hybrid seeds of cotton as well. This inclusion has definitely brought about an immense increase in the crop production.
List of contract farming companies in India
- Baidyanath contract farming
- Aloe vera contract farming companies in India
- Dabur contract farming
- Patanjali Contract farming
- Tulsi contract farming.. more..
Kindly review Contract Farming Act also.