How can I start contracting in Uttar Pradesh?
Firstly you need to know what exactly is Contract Farming . You will need to get into an agreement with a farmer or group of farmers to produce X crop for you which you will then buy it from them and sell the same in the open market.
Is contract farming profitable for farmers?
The survey results show that the average revenue of a contract farm is about 11 percent higher than an average non-contract farm. The per hectare cost of production in a contract farm is about 13 percent lower and as a result the average profit margin under contract is more than 50 percent above those without contract.
Which states in India have contract farming?
The value of output per cropped area under contract farming was highest (Rs 91,000) in Andhra Pradesh (including Telangana), followed by Karnataka (Rs 68,000), Punjab (Rs 51,500), and it was the least in Haryana at Rs 41,000 per acre.
Is contract farming legal in India?
Experts say that with Model Act 2018 already in place, there was no need to bring the new law in 2020. Now the 2020 Act on contract farming will supersede the 2018 law. Keeping the 2018 law as base, some states had enacted own legislations on contract farming. Now, such laws will also stand null and void.
Is contract farming done in India?
Though contract farming is not new to India, it was prevalent during British rule; cash crops such as indigo, cotton, opium, tobacco, tea were always grown through this system and it has also been in practice for at least 2 decades in many states of India but no absolute and nationwide Act was formed for it, until …
What is the disadvantage of contract farming?
This model can bear disadvantages for vertical coordination and for providing incentives to farmers (buyers may lose control of production processes, quality assurance and regularity of supplies; farmers may not benefit from technology transfer; there is also a risk of price distortion and reduced incomes for farmers).
Is contract farming successful in India?
Whilst the concept of contract farming is still not mainstream in India, there have been successful models that have evolved over the years. Seed production has primarily done through contract farming between seed corporations and producer farmers.
Is contract farming mandatory?
Currently, contract farming requires registration with the APMC in a few states. Despite this, it hasn’t taken off properly and only 15 companies have entered into contract farming for crops in Punjab, Haryana, MP, Gujarat, Maharashtra, Karnataka and Chhattisgarh. Most of these contracts are for cotton and barley.
Is contract farming good for small farmers?
Advantages. It reduces the risk of production, price and marketing costs. Contract farming can open up new markets which would otherwise be unavailable to small farmers. It also ensures higher production of better quality, financial support in cash and /or kind and technical guidance to the farmers.
Why did contract farming fail?
In a number of instances, the PAFC was forced to step in and buy the produce that was rejected by contracting companies. In 2012, owing to lack of interest from the new state government, marketing problems and lack of support from the Centre, the contract farming scheme in Punjab was scrapped.
What is UPUP’s contract farming scheme?
UP state govt. is going to launch Contract Farming Scheme for farmers. Subsequently, this scheme will help in achieving the Center’s objective of Doubling Farmers Income by 2022.
What is the scope of contract farming in up?
Contract farming Scheme is a key driver in doubling income of farmers. 2. Subsequently, the state govt. will provide an assured market and better prices to farmers. 3. Through this scheme consumers will get goods at relatively low price. 4. UP govt. will bring the contract farming law to protect farmers from changing prices of perishable items.
What are the benefits of a farming scheme for farmers?
This farming scheme will provide help to the farmers to get better price of their production. In addition to this, it will also minimize post harvest losses to a great extent. The involvement of state in this type of farming will help farmers in a substantial manner.
How can I Sell my crops to farmers?
You will need to get into an agreement with a farmer or group of farmers to produce X crop for you which you will then buy it from them and sell the same in the open market. So far so good. Now the problem in this equation.