Contract Farming is a system of organized agriculture wherein the farmers grow selected crops under buy-back arrangement with a company involved in trading and processing.
The primary aim of this concept is to ensure regular supply of predetermined quality of a particular produce on a steady / seasonal basis to meet both domestic demand and international requirements. These factors, coupled with high technology implementation and professional project management during the production season are important prerequisites for the success of contract farming to ensure steady supply of crops at pre-agreed prices of the pre-planned supply schedules.
The success of methodological approach to organized farming is easily demonstrated on demonstration farms that, would, over time, not only create an awareness of the economic viability of organized agriculture and foster a high level of confidence with small stakeholders i.e. farmers, to partner with contracting agencies to adopt new methods of agriculture. Buy back arrangements and farmer-agency contracts are planned and implemented in a transparent manner to fulfill all commitments for immediate payment to the farmer on buy back of produce.
We undertake contract farming for Basmati rice, non-basmati rice, Fruits, Vegetable and Certified Organic produce in southern & northern part of India.
This contract farming program has been our effort to sustain a mutually rewarding public-private partnership and the result has been record growth in the program year on year basis. Looking to the success of the program we plan to increase our land under Contact Farming from 1,25,000 acres to 2,12,000 acres. Having built a relationship of trust over the years, we are today associated with 43,000 farmer families and 60 dedicated farm extension workers.