Contract Farming in India - Its Implications
1.1.Introduction on Contract Farming
Contract farming is defined as a system for the production and supply of agricultural produce under forward contracts between the companies (buyers) and the farmers (suppliers). The essence of such an arrangement is commitment on the part of both the buyer and the seller. The commitment of the suppliers/farmers to provide an agricultural commodity of certain type and quality at a specified time and place and in the quantity required by the company(buyer).
Contracts could be of three types;(i)procurement contracts, under which only sale and purchase conditions are specified;(ii)partial contracts, wherein only some of the inputs are supplied by the contracting firm and produce is bought at pre-agreed prices; and(iii)Total contracts, under which the contracting firm supplies and manages all the inputs on the farm and the farmer becomes just a supplier of land and labor.
Some of the major corporates, financial institutions, agri-input agencies and other organizations that have entered into contract farming in India are listed below:
Amira Foods India Ltd | Nijjer Agro Foods Ltd | Appachi cotton company | Pepsi Fooods Pvt Ltd | AVT Natural Products Ltd | Rallis India | Cargil India Pvt Ltd | Suguna Hatcheries Ltd | Escorts Machinery Group | Southern India Mills Association | Gherkin Exporters | State Bank of India | Global Green Company Pvt Ltd | Super spinning Mills Ltd | Green Agro Park Pvt Ltd | Tinna oils and chemicals Ltd | Hiamalaya Drugs Pvt Ltd | Ugar Sugar | Hindustan Lever Ltd | Unicorn Agrotech Ltd | ICICI Bank Ltd | United Breweries Ltd | IDBI | UTI | Ion Exchange Enviro Farms | Venkateshwara Hatcheries Ltd. | ITC-International Division | Marico Industries | Ken Agritech | Mahindra Shubhlabh Services | | Natural Remedies Pvt Ltd | | Nestle India Ltd | | | | |
The various state intervention strategies as well efforts by non-governmental organisations to arrest
Contract farming is defined as a system for the production and supply of agricultural produce under forward contracts between the companies (buyers) and the farmers (suppliers). The essence of such an arrangement is commitment on the part of both the buyer and the seller. The commitment of the suppliers/farmers to provide an agricultural commodity of certain type and quality at a specified time and place and in the quantity required by the company(buyer).
Contracts could be of three types;(i)procurement contracts, under which only sale and purchase conditions are specified;(ii)partial contracts, wherein only some of the inputs are supplied by the contracting firm and produce is bought at pre-agreed prices; and(iii)Total contracts, under which the contracting firm supplies and manages all the inputs on the farm and the farmer becomes just a supplier of land and labor.
Some of the major corporates, financial institutions, agri-input agencies and other organizations that have entered into contract farming in India are listed below:
Amira Foods India Ltd | Nijjer Agro Foods Ltd | Appachi cotton company | Pepsi Fooods Pvt Ltd | AVT Natural Products Ltd | Rallis India | Cargil India Pvt Ltd | Suguna Hatcheries Ltd | Escorts Machinery Group | Southern India Mills Association | Gherkin Exporters | State Bank of India | Global Green Company Pvt Ltd | Super spinning Mills Ltd | Green Agro Park Pvt Ltd | Tinna oils and chemicals Ltd | Hiamalaya Drugs Pvt Ltd | Ugar Sugar | Hindustan Lever Ltd | Unicorn Agrotech Ltd | ICICI Bank Ltd | United Breweries Ltd | IDBI | UTI | Ion Exchange Enviro Farms | Venkateshwara Hatcheries Ltd. | ITC-International Division | Marico Industries | Ken Agritech | Mahindra Shubhlabh Services | | Natural Remedies Pvt Ltd | | Nestle India Ltd | | | | |
The various state intervention strategies as well efforts by non-governmental organisations to arrest
Bibliography: 2. Arun kumar.S and Premlatha Singh., Perceived Constraints of Contract Farmers and Apprehensions of Non-Contract Farmers in Tamil Nadu., Pusa AgriScirence., Vol 32, Pg.75-78. 2009. 7. Hague.T , Reforms for Agricultural Growth and Rural Development, EPW, November 29, 2003, Pg.5031-33. 8. Jeffery Lawrence D’Silva, Hayrol Azrid Mohammed Shaffril, Jegak Uli, Bahaman Abu Samah, Review of Contract Farming and factors that impinge youths acceptance to Contract Farming.,European journal of Social Studies, Volume 11, No.2., 2009. 11. Mahendra Dev.S, N. Chandrasekhara Rao.,Food Processing and Contract Farming in Andhra Pradesh, A Small farmers perspective. EPW, June 25, 2005. Pg.2705-13. 12 16. Pramod Kumar, Contract Farming Through Agribusiness Firms and State corporation.-A Case study in Punjab, EPW, December 30, 2006, Pg.5367-75. 18. Sukhpal Singh., Implications of FDI in Food Supermarkets. , Economic and Political Weekly, August 21, 2010, Vol .XLV, No 34. Pg.17 to 20. 20. Sukhpal Singh, MNC’s and Agricultural Development, Journal of International Development, 2002.