Contract farming (CF) is potentially beneficial to small farmers, providing services not readily available by other means. In reality, growers frequently face serious problems in dealing with firms, indicating the need for intervention by government or by farmers’ organizations. However, the hybrid structure and multiple objectives of Contract farming schemes make it difficult to organize farmers or to design effective policy interventions. This article describes some of the most frequent problems, points out trade-offs among competing welfare goals and cautions against the use of Contract farming as a simple model for agricultural development.
importance of contract farming in India
- Committed to link rural communities to the global mechanisms for sustainable development
- we are Experts in agro forestry based cultivation, Social Change Management, rural and Community development and Environment.
- Strong tie-ups with international institutions, experts, consulting, organisations, Corporate companies, NGOs, FPO’s, women self help groups (SHG), farmer and tribal communities in AP and TS States…etc.
- Domain knowledge in sectors like forestry, agriculture, coastal management, agro forestry, horticulture, bio-energy, biofuels etc.
- Our Organization having 100 of Volunteers in every districts in both AP and TS.
definition of Contract Farming
Meaning of Contract Farming is an agreement between farmers and marketing firms for the production and supply of agricultural products under certain agreement, frequently at predetermined prices.
objective of contract farming
- To achieve consistent quality
- To achieve regular supply
- To improve quality of produce
- To stabilize the agro-raw produce
- Price is not affected by market price.
advantages of Sponcer company
- Uninterrupted and regular flow of raw material.
- Protection from fluctuation in market pricing.
- Long term planning made possible.
- Dedicated supplier base.
- Builds long term commitment.
- Generate goodwill for the organization.
- political acceptability
- overcoming land constraints
- production reliability and shared risk
- quality consistency
- Promotion of farm inputs.
importance of contract farming in India
- Production and marketing are very critical in India.
- Overcome inadequate linkages with market.
- Lack of capital, poor infrastructure, technology transfer etc.
- To avoid post-harvest losses.
- Unfavorable conditions for procurement.
- To avoid migrations.
- Advantages for farmers
- It’s very much useful to small and marginal farmers scale farmer.
- Assured market and returns.
- Risk elimination due to price fluctuations.
- Timely transport.
- Reduces exploitation from middlemen.
- Reduces lending from private money lenders.
- Adequate input supply.
- Employment generation.
- Free input material available from sponsor
- Famers to learn new skills and knowledge through sponsor company and their representative
what our organization provides input to the farmer
- Identify small and marginal farmers scientifically. No need to Expense more money on purchasing plants, plantation purpose and Fertilizers.
- Provide advice and training in Agronomy, Soil Conservation, best plantation practices and use of environmental friendly technologies by
Our technical team and experts
- Arrange seedlings produced from clone / air layer method/ tissue culture or through seed technology to the farmers to raise plantations.
- Promote farmer-industry partnerships with buy back arrangements to purchase wood.
- Encourage farmers to go for agro-forestry practices such as inter-cropping during the first year to up to end of the main crop, meet their subsistence costs.
- Generate additional income from carbon credit to the farmers. To provide additional income through carbon revenues to improve livelihoods of disadvantaged, vulnerable and indigenous communities in general and women in particular.
- Employment generation in rural area people through agro forestry based cultivation.
- To protect vulnerable species through agro forestry way
- Develop and strengthen the capacity of small and marginal farmers, FPOs/SHGs/. and NGOs to enhance their negotiation skills to take advantage of the international mechanisms.
- Using a multidisciplinary approach, our water access and management programs encompass varied themes of water solutions for agriculture.
- Engage farmers and ranchers in the development and adoption of practices that are profitable and environmentally sound.
- Support research and education intended to help farmers and ranchers mitigate and adapt to climate change
- Improve production efficiency, productivity, and profitability
- Address threats from pests and diseases
- Improve the quality of surface water and groundwater resources Our Organization Encourage and motivate Agro forestry based Sustainable agriculture programs facilitate sustainable natural resource utilization and equitable access and sharing of financial resources. With our climate resilience approach, our focus is on improving market linkages and access to finance for small, marginal farmers, which are critical factors to stimulate livelihood and sustainability, enhancing investments in agriculture.
- Conservation of biodiversity through reduced dependence on natural forests Production of raw material to the International and National industry locally thereby reducing the cost of transportation and consumption of fossil resulting in reduced emissions.
- Saving of valuable foreign exchange by producing wood for industries and construction industry.
- End of the Forest Products or wood we provide marketing support. Development of suitable agro forestry models through research in collaboration with retired scientists, market experts, IWST and ICRAF and other international and national research organizations and the results of such research would be fed into this project for adoption of agro forestry models by the farmers to increase their returns.
- WE GKF AGRO FORESTRY (P) LTD Bhadradri kothagudem dist Telangana state Company started Forestry and fruit specis Contract Farming concept Introduced In Andhra pradesh and Telangana in Rural development programme Mostly we are Focusing on small and marginal farmer purpose as well as home based becz of in india so many poor peoples doesn’t have agriculture lands.
