Agricultural marketing

Contract Farming/Marketing: 
Contract farming is evolving an institutional arrangement of alternative 
marketing in India. One of the brilliant ideas that are being thrown around is that of 
contract farming. Indian government, agriculture and commerce ministries, corporate 
interests, IMF, World Bank, Indian agricultural scientists,are keen on farming by 
contract. It is such a simple and benevolent idea thrown in by consultants of global 
repute. State like Punjab, Karnataka, Maharastra, Madhya Pradesh and Tamil Nadu have 
been front runners in this regard. Experience shows that there is considerable saving of 
inputs and rising profitability due to introduction of technology and effective extension 
service. It is also successful in crop diversification in many states such as tomato in 
Punjab and Haryana, cucumber in Andhra Pradesh, cotton in Tamil Nadu etc. 
It is a bipartite agreement between farmer and industry to supply the agreed 
quantity at a specified date. Services provided by sponsoring firms range from supply of 
inputs, extension service, quality monitoring to purchase of output. However the absence 
of common legally binding contractual arrangement gives the way for violation the 
contract on both sides. Some successful cases are presented as follows. 
Successful Contract Farming Projects in Andhra Pradesh
Crop
Location 
 
Company 
Cocoa
EG, WG 
Cadburys India 
Oil palm 
- 
SICAL, Godrej, 
Palm tech 
Vegetables 
Kuppam 
BHC 
Gherkins 
Chittoor, 
Global Green
Mehaboobnagar 
Capricorn Foods 
Marigold 
Anantapur 
A.V. Thomas 

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Indian Goosberry 
- 
DABUR
Potential areas of Contract farming in Andhra Pradesh.