05-10-2012, 05:09 PM
Contract Farming
Contract Farming.ppt (Size: 166 KB / Downloads: 24)
What Is Contract Farming
The Farmer Is Contracted to Plant the Contractor’s Crop on His Land
Harvest and Deliver to the Contractor, a Quantum of Produce, Based Upon Anticipated Yield and Contracted Acreage
This Is at a Pre Agreed Price
Towards These Ends, the Contractor May or May Not Supply the Farmer With Selected Inputs
What Else Did It Do?
Mono-culture,over fertilisation & excessive water usage
Soil degradation..
Singular focus on supported crops discourages diversification.
Subsidised exports to liquidate stock creates a further distance between the international market & domestic reality.
Why Contract Farming ?
To reduce the load on the central & state level procurement system.
To increase private sector investment in agriculture.
To bring about a market focus in terms of crop selection by Indian farmers.
To generate a steady source of income at the individual farmer level.
To promote processing & value addition.
To generate gainful employment in rural communities, particularly for landless agricultural labour.
To flatten as far as possible, any seasonality associated with such employment.
To reduce migration from rural to urban areas.
To promote rural self-reliance in general by pooling locally available resources & expertise to meet new challenges.
The Advantages Of Contract Farming
Exposure To World Class Mechanised Agro Technology.
Obtains An Assured Up Front Price & Market Outlet For His Produce.
No Requirement To Grade Fruit, As Mandatory For Fresh Market Sale.
Bulk Supplies Versus Small Lots As Again Reqd By The Fresh Market.
Crop Monitoring On A Regular Basis. Technical Advice, Free Of Cost At His Doorstep.
Supplies Of
Healthy Disease Free Nursery
Agricultural Implements
Technical Bulletins Etc
Remunerative Returns
In Conclusion
India, given the diverse agro climatic zones, can be a competitive producer of a large number of crops.
Need to convert our factor price advantage into sustainable competitive advantage.
Contract farming offers one possible solution.