Seminar

Presentation

On

Contract
Farming:
Most awaited influx required in
agribusiness industry for Overall

BY
CALEB PRADHAN
13BTAG004,
ALEX FREDERICK
13BTAG006
BILLY GRAHAM
RAM 13BTAG015
NITIN RAI
13BTAG016
RAVI KUMAR
13TAG028

O
F

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CONTRACT FARMING
IS
DEFINED AS A SYSTEM
-FOR

THE PRODUCTION AND SUPPLY OF

AGRICULTURAL/HORTICULTURAL PRODUCE UNDER FORWARD
CONTRACTS

-BETWEEN

PRODUCERS/SUPPLIERS AND BUYERS. THE ESSENCE OF

SUCH AN ARRANGEMENT IS THE COMMITMENT OF THE
PRODUCER/SELLER

-TO

PROVIDE AN AGRICULTURAL COMMODITY OF A CERTAIN

TYPE,

-AT

A TIME AND A PRICE, AND IN THE QUANTITY REQUIRED BY A

KNOWN AND COMMITTED BUYER.
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OBJECT OR GOAL-

WHY CONTRACT FARMING?

TO REDUCE THE LOAD ON THE CENTRAL & STATE LEVEL
PROCUREMENT SYSTEM.
TO INCREASE PRIVATE SECTOR INVESTMENT IN AGRICULTURE.
TO BRING ABOUT A MARKET FOCUS IN TERMS OF CROP
SELECTION BY INDIAN FARMERS.
TO GENERATE A STEADY SOURCE OF INCOME AT THE
INDIVIDUAL FARMER LEVEL.
TO PROMOTE PROCESSING & VALUE ADDITION.
TO GENERATE GAINFUL EMPLOYMENT IN RURAL
COMMUNITIES, PARTICULARLY FOR LANDLESS AGRICULTURAL
LABOR.
TO FLATTEN AS FAR AS POSSIBLE, ANY SEASONALITY
ASSOCIATED WITH SUCH EMPLOYMENT.
TO REDUCE MIGRATION FROM RURAL TO URBAN AREAS.
TO PROMOTE RURAL SELF-RELIANCE IN GENERAL BY
POOLING
LOCALLY AVAILABLE RESOURCES & EXPERTISE TO AMEET
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METHOD
Set Up The Building Blocks For The
BusinessCommercializatio
Land Preparation & Planting,
Crop Monitoring During Growing Period
Harvesting & Procurement, Transportation Logistics
Prompt Farmer Payment System
The Extension Services Team
- Selection and Training
Farmer Education Program
Field Trials at Farmer Fields
- Multi-locational & Crop Timing

Technology
Transfer

Evaluation of Promising Varieties and Hybrids

R&
Multi Locational Trials and Short-listing - Selection
Blueprint for Agricultural Practices After Adapting
To Local Conditions, To Suit Intellectual & Financial
Means Of The Farmer

D Activities
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METHOD(CONTD)
Moving to a Value Delivery Sequence
Choose
the
Value

SEED
R&D
VARIETY
ACTIVITY SELECTION EVALUATIO
N

Provide
the
Value

Communicat
e the Value

CONTRACT PROCESSINGMFRS,BRAND DIST

CONSUMER
FARMING
MARKETEER RETAIL
S

Span of Involvement
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RESULTS OR
EXPECTATIONS
The Advantages Of Contract Farming To The Farmer
-Exposure To World Class Mechanized Agro Technology.
-Obtains An Assured Up Front Price & Market Outlet For
His Produce.
-No Requirement To Grade Fruit, As Mandatory For
Fresh Market Sale.
-Bulk Supplies Versus Small Lots As Again Reqd By The
Fresh Market.
-Crop Monitoring On A Regular Basis. Technical
Advice, Free Of Cost At His Doorstep.
-Supplies Of Healthy Disease Free Nursery, Agricultural
Implements ,Technical Bulletins Etc.
- Remunerative Returns
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RESULTS OR
EXPECTATIONS(CONTD
.)

To The Company:
-Uninterrupted & Regular Flow Of Raw
Material.
-Protection From Fluctuation In Market
Pricing.
-Long Term Planning Made Possible.
-Concept Can Be Extended To Other Crops.
-Builds Long Term Commitment
-Dedicated Supplier Base
-Generates Goodwill For The Organization.
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CONCLUSION
TO ESTABLISH AN AGRARIAN ECONOMY THAT ENSURES FOOD AND
NUTRITION SECURITY TO A POPULATION OF OVER A BILLION, RAW
MATERIAL FOR ITS EXPANDING INDUSTRIAL BASE, SURPLUSES FOR
EXPORTS, AND A FAIR AND EQUITABLE REWARDING SYSTEM FOR
THE FARMING COMMUNITY, COMMITMENT DRIVEN CONTRACT
FARMING IS NO DOUBT A VIABLE ALTERNATIVE FARMING MODEL,
WHICH PROVIDES ASSURED AND RELIABLE INPUT SERVICE TO
FARMERS AND DESIRED FARM PRODUCE TO THE CONTRACTING
FIRMS. SEVERAL INDIAN AND MULTINATIONAL COMPANIES HAVE
ALREADY BEGUN SUCH INITIATIVES IN INDIA AND HAVE
DEMONSTRATED REPEATED SUCCESS. THE SUCCESSFUL CASES
SHOULD ENCOURAGE THE REST OF THE PRODUCING AND THE
CONSUMING ENTERPRISES TO EMULATE THEM FOR MUTUAL
BENEFITS IN SPECIFIC AND INDIAN AGRICULTURE IN GENERAL.

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A big
thanks to
allllll
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