Contract Farming is a new method, through which the farmer directly contracts with the buyer and earns more profit.
Contract Farming: If farmers try technology in farming or try new methods, then they can earn more profit. Yes, in today’s time, many farmers are doing this, which is not only giving a new dimension to the agriculture world in agriculture, but also providing them an opportunity to earn more profit. The farmers of Barabanki district of Uttar Pradesh are more aware in this matter. That’s why he is one step ahead. Such farmers of Barabanki who have adopted contract farming are leading a happy life today.
What is Contract Farming?
Contract farming is actually a new method, through which the farmer directly associates with the buyer and makes a contract and earns more profit. For this, the central government is also making the farmers aware to do farming in a modern way. The new dimension of modern farming is ‘contract farming’ or else contract farming.
- Here are the main advantages of contract farming:
Farmers are being provided more profit opportunities
- A new dimension of modern farming is contract farming
- Direct contact of farmers with buyers
- More opportunities for farmers
- New avenues of private investment in agriculture sector through contract farming
- Barabanki set a great example of contract farming
Barabanki district, just 20 km from Lucknow, the capital of UP, is famous for its advanced farming. More than two dozen Farmer Producer Organizations (FPOs) are working in Barabanki, which is considered very prosperous in terms of agriculture, to help farmers in producing their crops as well as processing and marketing them. These organizations are providing seeds, fertilizers, pesticides, agricultural machinery to thousands of poor farmers at the right price and also freeing them from middlemen and black marketing in the market.
How are small farmers earning big money?
Till now farmers could not get the right price for their produce and marketing also faced many problems, but now small farmers have got rid of the freight and low prices of their produce. Farmer Dilip Yadav says that a meeting was held in the village, in which it was told that Aasara is a Biotic Producer Company, it is a company of farmers, in which farmers themselves can become members. The company gives information about new technology to such farmers about farming.
Through this, farmers are diverted from traditional farming to vegetable cultivation. Actually, the purpose of the company behind doing this is that how the small farmer can be given an opportunity to earn more profit by cultivating vegetables in less area. At the same time, farmers do not even have to worry about selling their crops because in this process the people of the company themselves come and buy and take away the crop. There is neither the hassle of any trader nor the hassle of selling the crop. In such a situation, when the farmers get more profit, the farmer also gradually increases the area of sowing his crop. In this way the profit of small farmers goes on expanding.
What is the role of FPO authorized by Agriculture Department in contract farming?
Farmer Indra Ram had signed a contract for farming on three acres of land for contract farming of vegetables last year by joining an FPO company named Asra. After that he made good profit. Today, through this, they are able to take care of the family as well as save.
In contract farming, FPOs authorized by the Department of Agriculture have a big role. In this, companies make a contract with the farmer that the contractor will buy the crop grown by the farmer at a fixed price, in which all the expenses from fertilizer, seeds to irrigation, wages are the contractor’s. Agricultural companies tell the farmers new ways of farming. The quality, quantity and delivery time of the crop is decided before the crop is grown, which directly benefits the farmers.
Farmers got relief from Mandi tax
Farmer Santosh Kumar says that farmers are expected to make good profits in contract farming. The tax which we used to pay in the market is being saved. At the same time, I have a relationship with an FPO company. With his encouragement, today I have registered my intention Parijat Farmer Producer Company and now I will work further by connecting farmers with it.
