More players may enter contract farming

The Cupboard choice on deal farming will not only spur personal investments in agriculture but

The Cupboard choice on deal farming will not only spur personal investments in agriculture but also free of charge up farmers from the clutches of APMCs and encourage them to make excellent make, say stakeholders.

At current, even the farmer producer organisations (FPOs) or producer corporations (PCs) are necessary to seek out permission from the APMC of their respective jurisdictions just before entering into any immediate sale arrangement underneath deal farming.

Farmers can now have immediate affiliation with the processors or exporters. This is a significant raise for the FPOs that can have interaction in processing and internet marketing pursuits, claimed Kuldeep Solanki, in cost CEO of Ahmedabad-based mostly Gujpro Agri-Enterprise Consortium producer business that has about 30 FPOs associated with it, covering about 45,000 farmers throughout the Point out.


The government’s choice to present a degree playing subject to farmers by letting them to have interaction with processors, aggregators, shops, and exporters devoid of exploitation is observed as a recreation changer in farm trade.

“This opens up new avenues for processing and internet marketing although it also opens a warehousing avenue for farmers. This is a significant gain,” Solanki claimed. “However, the future step will be to do capability building of these FPOs by connecting them with appropriate ecosystem. Make improvements to their internet marketing and processing abilities. There is a have to have to present handholding to contend with the proven gamers,” he additional. “It will spur additional investments into deal farming,” claimed Pankaj Khandelwal, CEO of INI Farms, the major exporter of pomegranates and bananas.

“It will bring in a ton additional entities that are severe about deal farming, who want to improve the excellent of make. Also, it will support inspire farmers in producing protected meals,” claimed Khandelwal, whose firm operates with about three,000 farmers.

He additional that the business and authorized framework, mainly the dispute resolution at the regional degree, is a innovative remedy.

Karthik Jayaraman, Co-founder, Waycool, claimed, “We are waiting around for aspects. But directionally, it is a good step.”

Have to have for clarity

Kurubur Shantkumar of Raitha Mitra FPO claimed deal farming with a pre-established pricing will be a welcome step.

Nonetheless, there is a have to have for additional clarity on the dispute resolution system and who would compensate for possible decline of crop or excellent all through the cropping cycle thanks to erratic local climate pattern or pest assaults, he claimed.

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