April 16, 2024

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Business The Solution

More players may enter contract farming

The Cabinet selection on deal farming will not only spur private investments in agriculture but also free of charge up farmers from the clutches of APMCs and stimulate them to produce high-quality produce, say stakeholders.

At existing, even the farmer producer organisations (FPOs) or producer organizations (PCs) are required to seek out authorization from the APMC of their respective jurisdictions before moving into into any immediate sale arrangement less than deal farming.

Farmers can now have immediate association with the processors or exporters. This is a large improve for the FPOs that can engage in processing and promoting functions, stated Kuldeep Solanki, in charge CEO of Ahmedabad-based mostly Gujpro Agri-Enterprise Consortium producer organization that has about 30 FPOs associated with it, masking about 45,000 farmers throughout the Point out.


The government’s selection to offer a level playing area to farmers by letting them to engage with processors, aggregators, merchants, and exporters with out exploitation is seen as a match changer in farm trade.

“This opens up new avenues for processing and promoting even though it also opens a warehousing avenue for farmers. This is a large benefit,” Solanki stated. “However, the subsequent step will be to do ability making of these FPOs by connecting them with ideal ecosystem. Improve their promoting and processing abilities. There is a need to have to offer handholding to contend with the recognized gamers,” he extra. “It will spur extra investments into deal farming,” stated Pankaj Khandelwal, CEO of INI Farms, the greatest exporter of pomegranates and bananas.

“It will bring in a whole lot extra entities that are major about deal farming, who want to improve the high-quality of produce. Also, it will support encourage farmers in making safe food items,” stated Khandelwal, whose company works with about three,000 farmers.

He extra that the professional and authorized framework, mostly the dispute resolution at the nearby level, is a resourceful solution.

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

Require for clarity

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

Nonetheless, there is a need to have for extra clarity on the dispute resolution mechanism and who would compensate for probable reduction of crop or high-quality in the course of the cropping cycle due to erratic local climate pattern or pest attacks, he stated.

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