A model for corporatization of agriculture in India

Oct 11
Posted by sujeetpillai

Objectives
1. To promote widespread corporatization of agriculture
1. Improve professionalism in agri-business
2. Increase private investments in agriculture support activities like irrigation projects, research
and development, training, etc.
3. Encourage increase of cultivable land in India by creating business cases for them
4. Improve agri-metrics like yield/hectare, etc.
5. Improve agri-produce marketing and sales and hence reduce small player unlawful practices
like hoarding, black marketing, etc.
2. Safety catches
1. Must ensure non-exploitation of farmers
2. Must ensure non-concentration of cultivable land amongst few corporates/individuals

Proposal

Create a framework where:

o Title deed is always with the Farmer
o The plot is empanelled by an agri-business corporate for a period of 1 year (Maybe season)
o The farmer is responsible for the labour put into working on the land
o The crop, seeds to be used, irrigation & fertilizer regime will be decided by the agri-business
corporate
o As a compensation for the effort the agri-business corporate pays the farmer a fixed
compensation every month
o All the yield from the plot is sole property of the agri-business corporate
o The farmer may break away from the agreement during its period at any point by paying off
a penalty amount defined in the contract
o At the end of a contract (1 year/Season) period the farmer may choose to renew the contract
with that or any other agri-business corporate willing to empanel their plot. No conditions
attached.

Advantages
1. The farmer always has ownership of the land.
2. The agri-business is able to run a business without outright purchase of the land. Rent rather than
buy. Quicker return on investments.
3. The farmer receives a steady monthly income hence not having to run a business which he is not
trained to do.
4. The agri-business is able to get better prices for the produce due to their distribution
network/alliances.
5. The farmer receives better training from the agri-business corporate and hence continually advances
his skills
6. The agri-business is better able to respond to market demands for food and other cash crops making
it a more efficient open free market.