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