Contract Farming on the Anvil in Haryana-Navraj Sandhu

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Contract Farming on the Anvil in Haryana-Navraj Sandhu

04 August 2006

SIRSA
Speaking at the Agri Expo, Ms. Navraj Sandhu said that Haryana Farmers should soon be able to get the benefit of Contract Farming very soon. She stressed that farmers should also improve the quality of the farm produce along with yield. In the times of competition and upcoming WTO regulations it becomes necessary to produce quality farm products, be it grains or fruit and vegetable products. She announced that insecticide testing facility at all district levels would be made available soon. She urged the farmers to go for quality seeds and pesticides and get proper bills/cash-memo for their farm input purchases, so that in case of any substandard or faked product the culprit might be brought to book.

Farmers who were visiting the Anaj Mandi attended the Exhibition. One of the attraction at the Expo was a Laser assisted computerized field leveler machine. Dr. BS Sheokand, Co-Ordinator Krishi Vigyan Kendra Sirsa, explained to Sirsa News that the tractor driven leveler is costly equipment costing several lacs of rupees (Rs5.25Lac for leveler and another Rs.4.5Lac for the tractor approximately). He said the equipment would be rented out to needy farmers at per hour usage, along with the expert driver. He is negotiating with the authorities to reduce the rental to make it more viable. He added that a properly leveled field saves plenty of water for flood-irrigated fields consequently also saves on Power and diesel expenditure.

Around the Seminar venue many companies both of private sector as well public sector had put up their stalls to exhibit their products, representatives from banking sector had also put up offices to apprise farmers of Farm Loans and other schemes. Mr Habaksh Monga from SBI and Mr. Makker from PNB were seen explaining farm loan schemes. The Chief Administrator HSAMB Ms. Navraj Sandhu, The DC The ADC along with many senior officials etc. also took a round of all the exhibits.

Deputy Commissioner Mr. V. Umashankar, ADC Mr. Vikas Yadav, SDM, Ms. Geeta Bharti, Dr. Dalip Monga from CICR also addressed the seminar.

A Note about Contract Farming: A SIRSA_NEWS Exclusive.
According to the contract, the farmer is required to plant the contractor’s crop on his land, and to harvest and deliver to the contractor a quantum of produce, based upon anticipated yield and contracted acreage. This could be at a pre-agreed price. Towards these ends, the contractor supplies the farmer with selected inputs, including the required technical advice. Thus, the contractor supplies all the inputs required for cultivation, while the farmer supplies land and labour. However, the terms and nature of the contract differ according to variations in the nature of crops to be grown, agencies, farmers, and technologies and the context in which they are practised. For example, contract farming in wheat is being practised in Madhya Pradesh by Hindustan Lever Ltd (HLL), Rallis and ICICI. Under the system, Rallis supplies agri-inputs and know-how, and ICICI finances (farm credit) the farmers. HLL, the processing company, which requires the farm produce as raw material for its food processing industry, provides the buyback arrangement for the farm output. In this arrangement, farmers benefit through the assured market for their produce in addition to timely, adequate and quality input supply including free technical know-how; HLL benefits through supply-chain efficiency; while Rallis and ICICI benefit through assured clientele for their products and services.