There are many confusions regarding Contract Farming – whether it is beneficial or not. Many rumours were spread also about it. Some farmers are happy with the new farm laws while others are protesting since months.
Farmers of two villages of Indore, Madhya Pradesh are cultivating potatoes under Contract Farming. They are relaxed as they get the pre-decided fixed price for their produce. This has assured their profits.
The chips manufacturer company is concerned about its product, so it takes care of everything from seeds to soil testing. There is also an advantage that, on selling the produce in the market, 1 kg weight is deducted on selling every bag of 60 kg of the produce, whereas only 100 grams’ weight is deducted on the same bag of 60 kg on selling the produce to the company under contract. More than 200 farmers of Indore district are growing potatoes under this policy.
Potato Contract Farming in Chhindwara for Nine years
At the same time, potato farming under contract is being done for nine years in umreth, Chaurai, Bichua, and Mohekheda blocks of Chhindwara.
This is the case of farmer having 30 bighas of land. He said, “I have been taking profits under the contract farming for three years. We know that, at what price contract will be profitable, and accordingly, prices are decided from the company. The company provides seeds whose quality is better than the seeds found in the market. Company also conducts soil testing periodically, so that we come to know that what amount of pesticides and fertilizer will be required.”
No Worries about Fluctuating Prices
Farmer Rajesh Ujjwal from Indore is cultivating potato under contract farming on five acres of land for three years. He said, “When other farmers are worried about the lowering of market price, at that time we know, at what price our produce will be sold. We get an advantage even when the market price is high. Like this time, we fixed the price at the rate of Rs. 16 per kg. But, market price was a little higher, then the bonus of Rs. 2 per kg was given.”
Company Provides Seeds
Golu, a farmer of village Harsola in Indore says that there is an advantage that the company provides seeds. If the seeds get spoiled because of any reason, there is a system of giving the claim on the behalf of the company. However, there has not yet been a claim-like situation.
Agriculturists inspect the Crop on the Behalf of Company
Agronomists come to inspect the crop on the behalf of the company. This provides guidance to deal with any type of insect disease. Farmers of many villages in the area are doing contract farming. Everybody is getting the benefit. Not even a single complaint has been brought about it in three years.
-Alok Meena, Joint Director (Agriculture), Indore Division
