Know More About
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.
Farmer will get Contract Farming Agreement. It reduces the risk of production, price and marketing costs. It also ensures higher production of better quality, financial support in cash and /or kind and technical guidance to the farmers.
Farmer will get Contract Farming Agreement. It reduces the risk of production, price and marketing costs. It also ensures higher production of better quality, financial support in cash and /or kind and technical guidance to the farmers.
Why You Need Go For
Contract Farming
- To avoid migrations.
- To avoid post-harvest losses.
- Production and marketing are very critical in India.
- Lack of capital, Poor infrastructure, Technology etc.
- Unfavorable conditions for procurement.
Lest Know About
Advantage of Contract Farming
-> Provisions of inputs and production services.
-> Introduction of appropriate technology.
-> Guaranteed and fixed pricing structures.
-> Access to reliable market.
-> Access to credits.
-> It can make agriculture remunerative.
-> It reduces risk of production, price and marketing costs.
-> Introduction of appropriate technology.
-> Guaranteed and fixed pricing structures.
-> Access to reliable market.
-> Access to credits.
-> It can make agriculture remunerative.
-> It reduces risk of production, price and marketing costs.
- Assured market and returns.
- Risk elimination due to price fluctuations.
- Timely transport.
- Reduces lending from private money lenders.
- Ensures higher production of better quality.
- Employment generation.
- Uninterrupted and regular flow of raw material.
- Dedicated supplier base.
- Generate goodwill for the organization.
- Get more lands for farming
- More plantation of trees
- Get some more extra earning.
- Contract farming arrangements are often criticized for being biased in favor of firms or large farmers, while exploiting the poor bargaining power of small farmers.
- Single Buyer – Multiple Sellers
- Undue quality cut on produce by firms, delayed deliveries at the factory, delayed payments, low price and pest attack on the contract crop which raised the cost of production.
- ndue quality cut on produce by firms, delayed deliveries at the factory, delayed payments, low price and pest attack on the contract crop which raised the cost of production.