Professional Documents
Culture Documents
Vast & Fertile land suitable for most of the major crops.
Opportunities
3 crop cycles will be possible with the advent of Narmada, Gujarat will
become one of the most fertile states.
Success Stories
Gujarat has some good success story and prospective agreements of
Contract farming in Gujarat
At present among successful contract farming practices undertaken in
Gujarat,
Godrej Agrovat Ltd. Is also planning to grow high quality oil palm
under contract farming in south Gujarat region by providing imported
tissue culture plants and farming technology to the contract farmers.
Pepsi India, Arvind mills, Jojoba Oil Industries Ltd., are some
companies who have approached the govt. and shown keen interest in
doing research and contract farming in Agro-products in Gujarat under
their backward integration projects.
The format
Simple registrations are the most common format which the farmer
signs to indicate that he/she has understood the terms of the
agreement and wishes a contract to be reserved for him/her
Spot-market prices
Split pricing, when the farmer receives an agreed base price together
with a final price when the sponsor has sold the product
contract formulas
TYPE
OF SPONSORS
FORMULA
GENERAL CHARACTERISTICS
Market
specifications
Individual
State
developers
marketing
authorities
Farmer
cooperatives
Subcontractors
Individual developers
Private
corporate
sector State agencies
Farmer cooperatives
Management
Private
corporate
and
income sectorNational
specifications
development agencies
Land
tenure Private
corporate
specifications
sector
National
development agencies
Resource
specifications
Identification of areas that are suitable for production and provide easy
access for transport and other support
Arrangements for the ordering and supply of inputs and provision for
farmer credit
Field extension services. Staff must be fully familiar with the product
involved and, preferably, have local knowledge
Training for extension staff and farmers, and research into varieties
and cultivation practices
the
key
Extension staff will need to carry out routine visits to all farms, the
frequency being determined by the nature of the crop
1. Material advances
a. The Company will advance from stock all chemicals, fertilizer,
insecticides, etc., required to produce the crop from the allocated land
area. The issues must not exceed the recommended rate for each
quota.
b. The Company will advance from stock: hoes, handles, watering cans,
seed-bed plastics and all established crop material requirements.
2. Land preparation
a. The Company will pay the official ploughing/scarifying/ridging
contractors on behalf of the farmers at prevailing rates.
b. Farmers who own tractors and wish to plough their own land will be
advanced a total of 30 litres of diesel per 20 acres for three ploughings.
If the fuel issued is abused this privilege will be forfeited.
3. Irrigation
a. In the event that farmers require irrigation, their accounts will be
debited with the cost of the operation at prevailing Company rates.
b. Similarly, if irrigation contractors are engaged, the Company
undertakes to pay the contractors at agreed rates and debit farmers'
accounts for the service.
4. Water pumps
a. Should a farmer's request for a water pump for irrigation be approved,
cash and school fee advances will be forfeited until the advance for the
pump is fully repaid or deducted from proceeds. If the capital
purchase exceeds US$250.00, the debt may be repaid over two crops
(cash/school fee advances forfeited for two seasons). Farmers with 40
acres or more will be eligible to acquire water pumps.
b. If two or more farmers share the cost of the pump, the debt must be
repaid the same year. Cash/school fee advances will be suspended
until the sum advanced is fully recovered. In this case the individual
quota could be below 40 acres.
c. Letters will be sent to the farmers regarding Company ownership until
the debt is fully repaid.
5. Water pump repairs
a. Water pumps that require servicing or repairs must be sent no later
than 28 February of each year to the stations with the farmer's full
name, farm number, etc., and a brief note describing the fault or
repairs to be carried out. The Company will either repair the pump at
its own workshop or have it repaired outside. Farmers will be debited
the cost of spare parts, workshop material and labour.
b. Pumps delivered after the specified date will not be accepted and no
arrangements will be made by the Company for repair or servicing.
6. Cash advance
a. As an added incentive for improved crop quality, the Company will
advance to farmers cash sums at the rate of US$l.00 per acre payable
after four weeks of transplanting, provided the farmer has cultivated
his/her field according to Company policy on field management.
b. Farmers who already have crop assignments to either the development
bank or commercial banks or have previous debts with the Company or
have purchased water pumps and still owe money to the Company will
not receive any cash advance.
7. Second cash advance
a. Farmers will be entitled to second cash advances at US$l.00 per acre
when their fields have been effectively treated with chemicals
according to the field officer's instructions. Farmers with a capital
advance will not qualify.
8. Land rent