contract farming

Contract farming in India


PROJECT REPORT ON ‘ CONTRACT FARMING IN INDIA ’

In partial fulfillment of the requirement of Master’s in Business Administration Course (MBA) Session: 2009-2010 International School Of Informatics and Management Jaipur SUBMITTED BY:

Babita Joshi

MBA: II SEM


EXECUTIVE SUMMARY

Master’s in business Administration (MBA) is a course that lays emphasis on

both theoretical and practical aspects of the education. It’s rigorous curriculum is

designed in such a way that the student gets to know the available tools required

to run a successful business organization and also apply them practically at

various training programs, which a undertaken as a part of curriculum.

As a part of our curriculum designed by Rajasthan Technical University, Kota we

are required to undertake a research on Contemporary management issue. This

reaesrch serves the purposes of acquainting the student with environment which

is of great relevence to the field of management .Only theoretical knowledge is

not enough but its practical application is also required to be learned.

In this respect I took upon the issue of “Contract Farming” which is directed

towards the most spoken issue in the recent times that is state of Indian

Agriculture. As per the latest developments the India the government is laying

special stress on improving the state of indian farmers. As per the reports the

input price in agriculture are high this is lowering down the interest of farmers to

practice agriculture this is causing food inflation to sore great heights. This is

creating ripple effect in food industry as profit margins are declining.

So the corporate farming has emerged as a new the dimension in this field where

the corporate world is taking measures to ensure that the farming practices are

improvised and the state of Indian agriculture is improved. In this project I took an

extensive reaearch on the current scenario in the agriculture which was taken

from the research papers published and the journals which highlighted the facts

and figures indicating the present cases. The next part of this included case

studies on corporate presence in agriculture. In the end carrying out this research

was of great importance in enhancing my knowledge about the subject.


ACKNOWLEDGEMENT

The project of this magnitude would not have been completed singly. Firstly I

want to give my hearty thanks to all mighty who made the world and me also.

There are many other people without whom the completion of the project would

not have been possible. Some have contributed towards this directly while other

have provided indirectly.

I am indebted to Dr. Ashok Gupta (Director ISIM, JAIPUR) for providing me a

good learning platform that provide me a distinct edge in the corporate world. I

would like to convey my heartiest gratitude to Dr. Manju Nair(PRINCIPAL ISIM)

and Dr. Kanwaldeep Dixit (Assistant Principal HOD Marketing) and all the faculty

members whose guidance helped a lot during my training.

Babita Joshi

MBA: II SEM


CONTENTS

1. Introduction

2. Objectives of Study

3. State of Indian Agriculture

4. Plight of Indian Farmers

5. Set up the Building Blocks for Business

6. Advantages of Contract Farming

To the FarmerTo the CompanyTo the Country

7. Cases of Contract Farming

The Classic Case of Pepsi Food Ltd.Apache’s Integrated Cotton CultivationUgar Sugar’s Experience with Barley

8. Pros and Cons of Contract Farming

9. Corporate Farming

Corporate Farming in IndiaCorporate Farming : A Tool of Growth or not

10. Bottlenecks and Criticisms

11. A Lot can be done Despite the Absence of a Legal Framework

12. Research Methodology

13. Questionnaire

14. Suggestions

15. Conclusion

16. Bibliography & Webliography


INTRODUCTION

Farming is an age-old means of livelihood for millions of Indians. However, there

have been few systems/models in which farmers are assured of a market for

their produce, leave alone a remunerative price. Farmers have on occasion had

to throw their produce away for want of buyers.

Globalization has already affected the farm sector in India, as in many other

developing countries, in a range of adverse ways. The most evident is the

squeeze on farmers’ incomes, and the threat to the viability of cultivation, which

has come about because of rising input costs and falling output prices. This

reflects the combination of reduced subsidy and protection to farmers in

developing countries, and trade liberalization which exposes these farmers to

competition from highly subsidized production in the developed world. This

combination, along with deflationary policies which have hit rural public

expenditure, has created unprecedented agrarian crisis over much of the

developing world, including in India.

However, until now, the Indian agricultural sector had been relatively spared from

the most extravagant excesses of neoliberal interference, in the form of the

corporatization of agriculture. That reprieve now seems to be over, as the central

government and several state governments in India are gradually won over by

the dubious charms of contract farming. This is increasingly being presented as

the great new hope and the way out of the morass in which Indian agriculture

now finds itself, and is being actively promoted by major international donor

agencies as well as by multinational companies that stand to gain from this

process, and has recently been promoted by the central government as well.


This is one side of the coin. On the other is the agri-based and food industry,

which requires timely and adequate inputs of good quality agricultural produce.

This underlying paradox of the Indian agricultural scenario has given birth to the

concept of contract farming, which promises to provide a proper linkage between

the ‘farm and market.’

Recognizing the need for and merits of such a linkage with the farming/producing

community, several corporate involved in agro-commodity trading, processing,

exports, etc. have attempted to establish convenient systems/models that ensure

timely and consistent supply of raw material of the desired quality and low cost.

This article discusses a few successful cases of contract farming and a brief note

on the bottlenecks and criticisms leveled against this emerging alternative farm

business model.

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.

Contract farming usually involves the following basic elements-pre-agreed price,

quality, quantity or acreage (minimum/maximum) and time.

According to the contract, the farmer is required to plant the contractor’s crop on

his land, and to harvest and deliver to the contractor a quantum of produce,

based price. Towards these ends, the contractor supplies the farmer with

selected inputs, including the required technical advice.


Thus, the contractor supplies all the inputs required for cultivation, while the

farmer supplies land and labour. However, the terms and nature of the contract

differ according to variations in the nature of crops to be grown, agencies,

farmers, and technologies and the context in which they are practised.

For example, contract farming in wheat is being practiced in Madhya Pradesh by

Hindustan Lever Ltd (HLL), Rallis and ICICI. Under the system, Rallis supplies

agri-inputs and know-how, and ICICI finances (farm credit) the farmers. HLL, the

processing company, which requires the farm produce as raw material for its

food processing industry, provides the buyback arrangement for the farm output.

In this arrangement, farmers benefit through the assured market for their produce

in addition to timely, adequate and quality input supply including free technical

know-how; HLL benefits through supply-chain efficiency; while Rallis and ICICI

benefit through assured clientele for their products and services. The consortium

is also planning to rope in other specialist partners including insurance,

equipment and storage companies.

The Government of India’s National Agriculture Policy envisages that “private

sector participation will be promoted through contract farming and land leasing

arrangements to allow accelerated technology transfer, capital inflow and

assured market for crop production, especially of oilseeds, cotton and

horticultural crops”. The NDA government at the Centre has already drafted a

model law on agricultural marketing to provide, among other things, legal support

to contract farming agreements. Several state governments, in Andhra Pradesh,

Gujarat, Karnataka, Punjab and Tamil Nadu, are actively promoting Contract

farming, changing laws to enable and support it, and providing companies

interested in it with a variety of incentives, including lifting of land ceilings,

subsidies and tax rebates.


Other state governments, including in West Bengal, are under active pressure to

change their policy towards contract farming. In this context, it becomes urgent to

assess the experience with contract farming both internationally and in the recent

Indian context. Contract farming is defined as a system for the production and

supply of agricultural or horticultural products under forward contracts between

producers/supplier sand buyers.

The essence of such an arrangement is the commitment of the cultivator 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, typically a large

company. According to the contract, the farmer is required to plant the

contractor’s crop on his land, and to harvest and deliver to the contractor a

certain amount of produce, based upon anticipated yield and contracted acreage.

This could be at a pre-agreed price, but need not always be so.

Typically, the contractor supplies the farmer with selected inputs and technical

advice. The typical contract is one in which the contractor supplies all the

material inputs required for cultivation, while the farmer supplies land and labour.

However, the terms and nature of the contract differ according to variations in the

nature of crops to be grown, the agencies or companies concerned types of

farmers, and technologies and the context in which they are practised.


Objectives of the study To find about the present state of Indian Agriculture.

To elaborate the concept of contract farming.

To analyse the important of contract farming using text and cases and

carrying out surveys.

To highlight the pros and cons of contract farming.


OBJECTIVES OF CONTRACT FARMING


STATE OF INDIAN AGRICULTURE

Most interesting fact about economic conditions in India is the overwhelming

preponderance of agriculture in the economic life of the country. Notwithstanding

the steady expansion of industry and trade and the increased employment

therein of a steadily larger section of the population, agriculture still dominates

the economic scene and the signs are that it would continue to do so for many

years to come. The population dependent on agriculture, pasture, fishing and

hunting as profession would rise to 234-8 millions, i.e., 67 per cent of the total

population of India. It is, therefore, evident that in India, agriculture still absorbs

the greatest possible mass of human effort and energy. But when we look at the

figures of agricultural production and of the per capita income of the agricultural

population of the country, we are struck by the singularly backward character of

the agricultural economy.

By whatever standard and from whatever angle do we attempt to appraise

agricultural conditions in India, we find that, compared with conditions obtaining

in European countries, India is still in the "middle ages". There may be

occasional bright patches here and there (India can certainly boast of a few

model farms and a few up-to-date agricultural research stations and institutes)

but, speaking generally, agriculture is still pursued in old primitive ways. There is,

in fact, a very vicious circle : agricultural 3peraticwns are primitive because the

cultivator is ignorant, poor, under-nourished and lazy, and the cultivator is

ignorant, poor, undernourished and lazy because agriculture, as at present

conducted, does not pay.

The other important fact about agriculture in India to-day is the very large area of

fallow land which is cultivable but not cultivated.


It is significant that notwithstanding the favorable prices of agricultural products

during the present war, the net increase in the area sown has been negligible.

India is believed to still possess more than 110 million acres of land classified as

"culturable waste", and all efforts to bring this land into cultivation have

apparently failed.

The other important fact about agriculture in India is the very large proportion of

food crops in the total scheme of agricultural production (vide Appendix Table II).

According to certain authorities, a high proportion of land under cereals and other

food crops is an index of agricultural overpopulation.

The other important fact about agriculture in India is the very large percentage of

landless rural labourers who sell their physical labour to farmers in order to earn

their livelihood. This has been the result partly of the pressure of a growing

population on land and partly of the absence of opportunities for any other type of

employment in the villages. Between 1921 and Contract farming is increasingly

being presented as a solution for the problems of Indian agriculture, by major

international donor agencies, multinational companies and even the government.

It is argued that private sector participation will be promoted through contract

farming and land leasing arrangements will allow accelerated technology

transfer, capital inflow and assured markets for crop production, especially of

oilseeds, cotton and horticultural crops.

The UPA government’s Approach Paper to the Eleventh Plan gave priority to the

development of contract farming. Now, a Working Group set up by the National

Development Council, under the leadership of the Punjab Chief Minister

Amarinder Singh, has also made a set of proposals to promote contract farming.


In addition to suggesting greater liberalization of laws and rules for crop

contracts, it has proposed tax rebates for food processing, duty-free imports of

machinery and equipment, exemption of market fees, etc., and liberalized

imports of seed varieties for contract farming programmes.

This system has old historical resonances, such as the infamous contracts

enforced by indigo planters in eastern India during the early colonial period. But

the more recent pattern of contract farming has been developed especially in the

United States, where corporate penetration of agriculture is probably the most

advanced. Agricultural trade globally is dominated by transnational corporations,

like Cargill, Archer Daniels Midland and Monsanto, which are increasingly

involved at each stage of the agriculture system. These corporations achieve

domination over the market through a combination of horizontal and vertical

integration.

This has increased the margins for the procuring and processing firms while at

the same time reducing farm incomes and increasing the prices for the

consumers. This explains the rising spread between retail prices and the prices

received by farmers and livestock breeders, which has been so marked in the US

over the past two decades. It is not generally known that US farmers have not

really gained from the continuing government subsidies to agriculture - instead

large agribusinesses have made huge and increased profits.

US farmers are financially and politically much stronger than Indian cultivators,

many of whom are already operating at the margin of subsistence. So it is

important to be fully aware of the implications and the need for adequate

regulation of contracts.


PLIGHT OF INDIAN FARMERS

The structure of Indian agriculture underwent rapid changes during the nineties

both due to the pressure of commercialization and increased dependence on

trade. This was fuelled by many overt and covert changes in the sector, but

diversification of crops along with the advent of WTO and liberalization policies

were the main players in the structural change. One of the important bottlenecks,

highlighted by many analysts of Indian agriculture refers to the small size of

holdings and the inability of the Indian farmers to compete with the large scale

farming of the West. This was manifested in the proverbial “level playing field”

often referred to in recent debates. One of the ways to deal with this small scale

farm operations is to bring small and marginal holders (not holdings) together in a

production system so as to deal with a particular product. This would address

three important issues simultaneously. First, the access to technology by

the small and marginal farmers has been quite restricted and it is was only

available to those who could garner information at a fast speed. The recent

NSSO report (59th Round) highlights this fact. Second, small and marginal

farmers faced discriminated pricing both in the factor and product markets and

that has resulted in reducing their net income flow. Lastly, the capability of small

and marginal farmers has always been far better than their large holding peers in

terms of productivity and quality of land. But all these years that could not be

taken advantage of due to the scale and limited access to technology. These

aspects need immediate attention and as society responds quietly to the

challenges in its own manner, contract farming has emerged in the country like

the Pepsi Model initiated in Punjab.


The experience has given rise to a large number of controversies including over-

exploitation of land, tendency towards monoculture, market dependence,

asymmetry about sharing gains between contractors and contractees and the

exploitation by contractors.

There are a good number of indepth studies available in the literature on

contract farming analysing these issues but not much has been done in the

context of Karnataka, where it is emerging steadily but firmly as an alternative. It

assumes additional significance as in Karnataka, contract farming is emerging in

the resource constrained region with low capital formation as its hallmark. The

study by Dr. S.Erappa is an attempt to fill this void. The study emerged out of his

personal keen interest and persuasion. Therefore, the study indicates his

concerted efforts and analytical prowess. He has analysed five different

contracting agencies and contract farmers connected with these agencies in

Southern Karnataka. The basic hypothesis attempted in the study is to look into

the question of “boon or bane”. The answer provided is not in terms of

monosyllables but provides a good background analysis, in addition to the

coverage in the field. He has been successful in bringing out a few basic

problems in contract farming in Southern Karnataka. I am sure that this study

would be useful to those who are looking at the regional specification of contract

farming models and responses of various farm groups in the process. The study

will also be useful to academics working in this field to fish out new questions in

the process.


Set Up The Building Blocks For The Business

COMMERCIALIZATIONLand Preparation & Planting,Crop Monitoring During Growing PeriodHarvesting & Procurement, Transportation LogisticsPrompt Farmer Payment System

R & D ActivitiesEvaluation of Promising Varieties and HybridsMulti Locational Trials and Short-listing - SelectionBlueprint for Agricultural Practices After AdaptingTo Local Conditions, To Suit Intellectual & FinancialMeans Of The FarmerEvaluation of Farmer Economics ModelDemonstration Farming

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 Required 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

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.

To the Country:-


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 labour.

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 meet new challenges.

New markets are necessary.

New marketing strategies.

New thinking to boost Indian agriculture.

Building capabilities.

Promoting investment.

Technology enhancements improve the lot of our farmers.

Broad based contract farming programs can be one possible solution.

1. The Classic Case of Pepsi Foods Ltd.


Launching its agro-business in India with special focus on exports of value-added

processed foods, Pepsi Foods Ltd. (‘PepsiCo' hereafter) entered India in 1989 by

installing a Rs 22 crore state- of-the-art tomato processing plant at Zahura in

Hoshiarpur district of Punjab. The company intended to produce aseptically

packed pastes and purees for the international market. However, before long, the

company recognized that investment in agro-processing plants would not be

viable unless the yields and quality of agricultural produce to be processed were

up to international standards. At that point of time, tomato had never been

cultivated in Punjab for its solid content, with a focus on high yields and other

desirable processing characteristics such as colour, viscosity and water binding

properties. Furthermore, little effort had been made to create a database on the

performance of various varieties and hybrids, or to introduce modern farming

practices.

There were no logistically efficient procurement models for fruits and vegetables

that could be built on by the company. These apart, there were simply not

enough quantities of tomato available even if the grown varieties/hybrids were

procured from the open market. The total Punjab tomato crop was 28000 tons,

available over a 25-28 day period, while PepsiCo required at least 40000 tons of

tomato to operate its factory, which had a gigantic capacity of 39 tons fresh fruit

per hour. The company required this intake over a minimum 55-day time frame,

and in 1989, the season in Punjab did not last beyond 28 days. Sceptics had

expressed doubts over the feasibility of the Zahura tomato processing plant, and

had said that it would remain a museum piece! There a wereformidable

challenge before the company and nothing short of a horticultural revolution was

required to solve the problem.


There was no choice but to alter the tomato production and logistics situation in

Punjab. This led to the birth of PepsiCo’s backward linkage with farmers of

Punjab.

PepsiCo follows the contract farming method described earlier, where the grower

plants the company’s crops on his land, and the company provides selected

inputs like seeds/saplings, agricultural practices, and regular inspection of the

crop and advisory services on crop management The PepsiCo model of contract

farming, measured in terms of new options for farmers, productivity increases,

and the introduction of modern technology, has been an unparalleled success.

The company focused on developing region- and desired produce-specific

research, and extensive extension services. It was thus successful in bringing

about a drastic change in the Punjab farmers’ production system towards its

objective of ensuring supply of right produce at the right time in required

quantities to its processing plant.

Another important factor in PepsiCo’s success is the strategic partnership of the

company with local bodies like the Punjab Agricultural University (PAU) and

Punjab Agro Industries Corporation Ltd. (PAIC). Right from the beginning,

PepsiCo knew that changing the mindset and winning the confidence of farmers

would not be an easy task for outsiders. The company’s unique partnership with

PAU and PAIC fuelled its growth in Punjab.

Encouraged by the sweeping success of contract farming in tomato in several

districts of Punjab, PepsiCo has been successfully emulating the model in food

grains (Basmati rice), spices (chillies) and oilseeds (groundnut) as well, apart

from other vegetable crops like potato.


The company, which had been involved in the export of Basmati rice since 1990,

was the first processor in India to invest and strengthen backward linkages for

Basmati rice. After extensive multi-locational field trials at its 27-acre R&D farm at

Jallowal near Jalandhar, PepsiCo ventured into contract farming in Basmati rice

on a commercial scale four years ago. The company invested over Rs 5 crore in

a modern processing plant at Sonepat in Punjab. It is involved right from the

stage of selecting varieties of Basmati (based on customer preference), seed

multiplication and development of a package of practices for farmers. PepsiCo’s

scientists, who ensure successful transfer of technology from the trial to the

commercial field levels, closely monitor the performance of the crop.

At the time of harvest, the company procures the entire pre-agreed quantum of

the harvested produce at the farm gates, at the pre-agreed price. The raw

material so procured is transferred to PepsiCo’s ISO 9002 and Hazard Analysis

Critical Control Point (HACCP) certified Rice Mill located at Sonepat for

processing, packing and export, ensuring that the product remains completely

traceable from field to consumers.

During 2007-08 crop year, farmers from Jalandhar, Amritsar, Hoshiarpur and

Sangrur districts of Punjab, and parts of Western Uttar Pradesh were contracted

for Basmati rice cultivation. The season’s acreage for the crop stood at 800

hectares. In 2001-02, contracted farmers reaped yields of 2.5 tons/hectare. By

the end of 2009, the company plans to increase the acreage under Basmati rice

to 4000 hectares to meet the complete requirement of its manufacturing plant.

Similarly, PepsiCo planned a foray into contract farming in groundnut with the

farmers of Punjab with the objective of producing export-quality, value-added

groundnut such as roasted and salted peanuts, flavoured and coated peanuts,

and peanut butter.


Using plastic mulch groundnut (PMG) technology sourced from China has

enabled PepsiCo to take up two crops in a year - one in the kharif and the other

in the rabi season. The company has demonstrated yields of 3.0 and 4.0 tons per

hectare on field trials for kharif and rabi crops respectively, much above the

national average of 1.0 ton/ha.

“Till date, there have been no serious defaults; as long as you are offering

technology that offers predictable results that are in line with the expectations of

the farmers, defaults remain minimal” says Mr. Abhiram Seth, ExecutiveDirector

(Exports and External Affairs) of PepsiCo, sharing his experience.

The company proposes to extend its contract farming in groundnut to farmers in

Rajasthan and Uttar Pradesh, who have shown great interest.

A sound R&D program backed by committed extension personnel to transfer the

resulting technologies has been the intrinsic strength of PepsiCo. Its focused

research on increasing yield levels, to the advantage of farmers (which in turn

brings down the cost of raw material to the company) has resulted in their

increased trust and loyalty towards the company. Post-PepsiCo entry has seen

the tripling of yield levels in chilli (from 6.0 tons/ha to 20 tons/ha) and tomato (14-

16 tons/ha to 52 tons/ha).

As part of its expansion plans, the company has been conducting initial trials at

Neelamangala in Karnataka to evaluate varieties/ hybrids of chilli for their yield,

colour, total solids, pungency and other traits/parameters. “We plan to go

commercial with chilli farmers of Karnataka next year,” says Mr. Seth.


On the company's plans, he said, “Our immediate focus would be to consolidate

and strengthen the existing activities”.

With this kind of a backward linkage with farmers of Punjab and Haryana,

PepsiCo developed a perfect contract farming model involving an enduring

relationship with local agencies including the State Government.

Key elements of PepsiCo’s success

● Core R&D team.

● Unique partnership with local agencies includes a

public sector enterprise.

● Execution of technology transfer through well-trained

extension personnel.

● Supply of all kinds of agricultural implements free of cost to

contracted farmers.

● Supply of timely and quality farm inputs on credit.

Prompt dispatch/delivery/procurement of the mature produce from every

individual contracted farmer through the system of ‘Quota Slips’

● Effective adoption/use of modern communication technology like pagers for communication with field executives

● Regular and timely payment to contracted farmers through computerized receipts and transparent system

● Maintenance of perfect logistics system and global marketingStandards.

2. Appachi’s Integrated Cotton Cultivation:


Innovative Model

Appachi Cotton Company (ACC), the ginning and trading house from Pollachi

(Coimbatore district of Tamil Nadu, India) hit the headlines in May 2002 for the

street play it employed to encourage farmers in the Nachipalayam village in

Kinathukadavu block of Coimbatore to sow cotton seeds in their fields. The

singer in the street play assured cotton farmers that, unlike in the past, they

would not be disappointed if they cultivated cotton on their fields, as they would

be backed by a model called the Integrated Cotton Cultivation (ICC), which would

guarantee a market-supportive mechanism for selling their produce.

ACC caters to top-bracket, quality-conscious clients from the textile industry in

India and abroad, and their client specific operation has won them laurels. ACC

is the only private ginner in the country to have successfully entered backward

and forward integration between the ‘grower’ (farmer) and the ‘consumer’ (textile

units).

Well in advance of the 2007 kharif sowing season, ACC undertook the Herculean

task of integrating about 600 farmers belonging to various districts of Tamil Nadu

on a holistic plank.

This was done at a time when failure of monsoon for the third consecutive year

was imminent. This led to the farmers’ perceiving the ICC programme as a boon,

as their traditional sources of finance and support had refused further funds due

to non-recovery of earlier loans.

The Appachi formula ensured that its farmer members never went short of

money and materials during the crucial 100 days of the crop cycle.


The contract assured the farmers easy availability of quality seeds, farm finance

at an interest rate of 12% per annum, door delivery of unadulterated fertilizers

and pesticides at discounted rates, expert advice and field supervision every

alternate week, and a unique selling option through a MoU with the coordinating

agency (ACC).

The core principle of the formula lies in the formation of farmers’ Self-Help

Groups (SHGs). Each farmer belonging to a SHG is sanctioned Rs 8000/acre as

crop loan @ 12 % p.a. interest. Disbursement of this amount is strictly need-

based. Allocation and disbursement is at the behest of the coordinating agency.

Hence all requests are scrutinised, evaluated, authenticated, and only then

recommended to the lending bank. All the participating farmers are asked to

issue PDCs (Post Dated Cheques) for the loan they avail. Hence, the moral

responsibility of fulfilling the bank’s obligation squarely lies on the participating

farmer.

The Appachi formula differs significantly from other existing contract farming

models on its ‘pricing’ front in that no prior price fixing is done in this model. As

cotton is a commodity prone to price fluctuations due to domestic and

international market forces, ACC did not wish to create a climate of uncertainty

due to pre-fixed prices with the contracting farmers.

“Our unique and transparent MoU allows the farmer to sell his commodity at the

market prices prevailing during the time of negotiation. The coordinating agency

has the first right to negotiate, but in the event of disagreement about price

during negotiation, the farmer groups can call for a tender/auction to sell the

accumulated cotton” says Mr. Chinnaswamy.


The MoU clearly stipulates conditions to be followed in case of open

tender/auction, and allows the coordinating agency to participate in the

proceedings.

The formula has built some checks and balances into the system for early

identification of troublemaking farmers or wilful defaulters and their elimination at

an early stage to protect the interest of the Group, the bank and the coordinating

agency. This is the first time ever that a cotton farmer in India has been forwardly

integrated to the consumer textile industry.

“Various methods including street plays, village level meetings, display and print

materials, door-to-door campaigns, and press meets were used to attract

farmers’ attention and gain their confidence. A major portion of our energies were

dedicated to bringing together all the linkage players such as the banks,

insurance company, farm service providers, and consuming textile units and

ensuring that they stayed committed to the programme. The successful

implementation of this programme with active participation of 12 farmer groups

belonging to various backgrounds and the linkage players itself amplifies the

clarity and the transparency the formula holds,” says Mr. Mani

Chinnaswamy,Managing Partner of ACC.

During the 2007 kharif season, about 950 acres of land in various blocks of

Coimbatore (Pollachi and Kinathukadavu), Theni (Bodi and Andipatti) and

Nammakal (Thiruchangode) districts of Tamil Nadu were contracted, involving

900 farmers. During the season, the contracted farmers witnessed a remarkable

reduction (by 25%) in cost of cultivation. “The programme is poised to make a

greater impact on cotton agronomy than the existing method of cotton cultivation

in the country” exults Mr. Mani.


By integrating backward and forward with the producing and the consuming

communities, ACC has attempted to address all the existing maladies of the

cotton supply chain. According to the leading ginner, who spearheaded the

unique supply chain model, such a system is ‘the need of the hour’ today not for

the ‘growth’ of textile industry in India but for its ‘very survival’ given the imminent

hardships and emerging challenges arising out of the perils of WTO (World Trade

Organization) and MFA (Multi Fiber Agreement).

Commenting on the future expansion plans of the company, Mr. Mani said “The

current membership size of these groups is expected to double/triple by the next

sowing season”.

Key principles of the ACC model

● One village, one group (SHG)

● One village, one variety/hybrid of cottonseed

● Crop loan at 12% per annum on Group’s guarantee

● Door delivery of quality inputs at discounted rates

● Cotton crop insurance

● Synchronized sowing

● Integrated crop management through competent FarmService Centres

● Contamination control measures from farm to factory

● Assured buyback of final produce from farmers’ doorsteps

● The sponsor (ACC) plays the role of a perfect coordinator/

facilitator between the producer and the consumer.


The Appachi Formula of contract forming has been so successful that the Tamil

Nadu Government is now keenly interested in replicating this formula in various

cotton-growing districts of the State. After successive high-powered meetings

with concerned State Ministers and officials, the formula has got a new fillip.The

State machinery is actively participating in propagation of this model in Theni and

Namakkal Districts. With the active participation of farmers, the State

Government and other stakeholders, the programme is sure to revolutionize the

cotton economy and set a successful precedent for many players to emulate the

same in their respective enterprises.

3. Ugar Sugar’s experience with barley

The story of the Belgaum (Karnataka)-based Ugar Sugar Works Ltd., which

established a successful backward linkage with farmers of Northern Karnataka

for supply of barley for its malt unit, is quite interesting and insightful. Farmers

surrounding Ugar Sugar in Belgaum, who had been cultivating sugar under

intensive irrigation found themselves with the problem of salinity in soils. Ugar

Sugar took this opportunity to begin creating awareness among the farming

community about alternative crops suitable for saline soils. Of these, barley was

known to give economic yields of good quality in saline soils.

The company assured the farmers of a market for their produce if they agreed to

grow barley, as well as the required technical and input support.

All this happened way back in 1997, when the company required 5000 tons of

barley annually for its malt unit. At that point of time, barley was cultivated on a

commercial scale only in the northern parts of India, which meant huge

transportation costs for the company to source from there.


Furthermore, such lots carried a mixture of feed and malt grade barley, which

meant no surety of consistent quality raw material. The company had no land of

its own to start barley production near its malt plant. This led to the birth of Ugar

Sugar’s unique contract farming system for barley production.

After intensive research and field testing of over 800 varieties of barley, the

company supplied UBE425 variety of barley to its 470 contracted farmers, who

mostly owned between 2-5 acres land, were within the radius of 40 kilometer

from the company’s malt plant, and had resources enough to irrigate the crop at

least twice during the crop cycle. The acreage under the contract grew from 356

acres in 1997-98 to 1350 in 2000-01 (It dipped to 819 acres in 2001-02). This

acreage was able to satisfy only 8-10% of the total annual requirement of barley

for the malt plant.

“The contract farming system helped us get barley with high starch, less protein

(<12%) and homogeneity, at the right time, in required quantities, and the most

competitive prices” says Mr. P.V.Shirgaokar, Executive Director of Ugar Sugar

Works Ltd.

Ugar’s barley contract farming model: Key elements

● The company supplies genetically pure seed on credit to the contracted

farmers without interest.

● The price of barley seeds supplied for sowing and the final produce that

procured by the company is the same i.e. cost of the seed is same as that

of the pre-agreed price of barley.


Hence, the quantity of seed supplied for sowing is recovered from the time

of procurement of the produce.

● A technical person from the company visits the farmers’ fields at least four

times in a crop cycle, giving free technical assistance.

● The company supplies seed at the sowing points in farmers’ fields, and

the final produce is procured from the fields at the company's

transportation cost.

● Under the contract, it is obligatory on part of both the contracting farmer

and the company to sell and buy respectively the entire contracted

quantity at the pre-agreed price. “As there is no market for barley in the

surrounding areas, there is no other alternative for the farmer except to

sell the produce to Ugar Sugar. There have been no defaults till date.

Even if a contracting farmer tries to sell the produce in the local market, he

would lose about Rs 350/quintal” clarifies Mr. Shirgaokar.

The price of barley fixed by Ugar Sugar varied from year to year

depending on the market for barley and malt. It was increased from Rs

600/quintal in 1997-98 to Rs 700 in 1999-2000, with a further rise of another Rs

50/quintal during the 2001-02 crop season.

However, owing to a dip in the international malt prices, Ugar Sugar did not

contract for barley production during the recently concluded 2002-03 crop

season. This experience of Ugar Sugar clearly speaks of the ‘price’ dimension

(market dynamics) that needs to be addressed in a long-term relationship like

contract farming.


However, the company remains undeterred by the losses of about Rs 42 lakh it

suffered (owing to price difference of Rs 315/quintal of barley between the

domestic market where the company was forced to clear its huge quantities of

unprocessed barley, and the landing cost per quintal of barley at the domestic

market yards). The Executive Director says- “Contract farming is one of the best

models for ensuring timely and desired quality of barley. If malt prices start

climbing, then Ugar Sugar will definitely think of restarting its barley processing

by sourcing the raw material through backward linkage. Belgaum, Bijapur and

Bagalkot are the potential districts for barley contract farming in Karnataka”.

Elaborating on the company’s future plans on the lines of its venture in barley,

Mr. Shirgaokar said “We are also interested in implementing the contract farming

system for high density plants such as Casuarina and Eucalyptus to source fuel

for our 44 MW cogeneration plant. Biodiesel plants such as Pongamia also have

a great future in the contract farming system.”

The Executive Director feels that the absence of legal framework for contract

farming is not a serious impediment to the success of the system. In his view,

creation of awareness among the producing community about the advantages of

the system, attractive and prompt payment, and assured market support even at

times of market-induced price crisis are the guiding principles of success for the

system.

The cases discussed here are a few among several such successful ventures by

corporate involved in food processing, agro-commodity and food products

exports. The demonstrated successes of gherkin exporters of Southern India,

which is over 90% based on contract farming, and that of Marico’s safflower

procurement through a successful backward linkage model, are worth

remembering here.


PROS AND CONS OF CONTRACT FARMING

Farmers in India are all set to see a sea-change in agriculture sector soon,

thanks to contract farming. Winds of change are blowing across the Indian

agricultural landscape with the advancement of contract farming. While earlier it

was limited to a certain small initiatives by the corporate sector, it is likely to

become a norm rather than exception, thanks to the entry of business giants like

Reliance [Get Quote] and ITC and also because of the encouraging change in

the government policies.

The size of agreements for contract farming with the farmers is also increasing

manifold. The central government is so serious about the issue that it is mulling a

contract farming policy for India.

Recently, Union Agriculture Minister Sharad Pawar said contract farming is

emerging as an important institutional arrangement in India that promotes

coordination between production and marketing activities.

"The main issue is to upscale contract farming. This will require both public and

private sector investments in roads, cold chains, electrification and processing,"

he pointed out. The minister added that the government's main concern is that

smallholders are not left out in the process. He also asked agro-business firms to

integrate farmers on their supply chains through institutions like cooperatives,

producers' associations and contract farming.

Pawar made it clear that the contract farming model that to be implemented in

India will ensure that land is permanently owned and cultivated only by farmers.


"We are not encouraging a model of leasing land and allowing the private sector

to acquire it for cultivation," he said. He also disclosed that the Centre is

encouraging farmers to form grass-root level associations or informal

cooperatives owned and managed by farmers themselves or producer

companies.

While the corporate will have us believe that contract farming is the panacea for

all the ills affecting the agriculture sector in the country today, it remains to be

seen whether it really turns out to be so.

Contract farming involves a pre-agreed price between the company and the

farmer. The agreement is defined by the commitment of the farmer to provide an

agricultural commodity of a certain type at a time and a price and in the quantity

required by a committed buyer, mostly a large company.

It is clear why the business sector is gunning for contract farming. They seek to

integrate the supply chain to ensure timely availability of quality and quantity of

raw material.

Significantly, it also reduces the procurement cost for them by doing away with

the middlemen. It leads to significant gains for them, as not only do they get the

raw material as per their specific demands, the cost is also much less.

It is also believed that the participation of the corporate sector in the farming

segment will play a crucial role in technology transfer, capital inflow as well as

lead to assured markets for crop production.


PepsiCo was the first company in India to start contract farming of tomatoes in

Hoshiarpur district of Punjab. Reliance Life Sciences, ITC (agri-business division)

and McDonalds are some of the prominent business giants, which have either

started contract farming projects already or are in the process of actively

discussing them with various state governments. PepsiCo and other companies

have used the contract system for the cultivation of Basmati rice, chilli and

groundnut, as well as for vegetable crops such as potato.

"PepsiCo's involvement in Indian agriculture stems from its vision of creating a

cost-effective, localized agri-base in India by leveraging its access to world class

agricultural practices," PepsiCo spokesperson said.

Till today, PepsiCo India's project with the Punjab Agro Industries Corporation

and Punjab Agriculture University remains one of the most ambitious contracts

farming projects in the country. "The programme focuses on evolving agricultural

practices to help Punjab farmers produce crops that would make Indian products

internationally competitive," says the spokesperson

What has been of crucial help to the business houses venturing into contract

farming is the amendment of the Agriculture Produce Marketing Committee Act in

14 states, which allows farmers to sell their produce in open markets. This has

opened the gates for the companies to enter this segment.

The United Progressive Alliance government's 'approach paper' to the Eleventh

Plan gives clear priority to the development of contract farming.

A working group set up by the National Development Council has also made a

set of proposals to promote contract farming.


The group suggests greater liberalization of laws and rules for crop contracts. It

has also proposed tax rebates for food processing, duty-free imports of

machinery and equipment and liberalized imports of seed varieties for contract

farming.

The model which is most popular in the country today is the one in which the

contractor supplies all the inputs required for cultivation, while the farmer

supplies land and labour. However, the terms and nature of the contracts vary

according to the crops grown, the agencies involved, the farmers themselves and

technologies and the context in which contract farming is taken up. Generally, a

farmer's participation is limited to production in the fields.

However, in the present context, contract farming is clearly a win-win situation for

both the corporates and the farmers. Agriculture sector is facing a number of

problems in the country and farmers actually don't have many options in the

matter of deciding whether or not to go in for contract farming.

With rising debt and soaring seed and fertilizer costs, contract farming seems to

be the only choice left open to them.

This is mainly because the company provides all the material including seeds as

well as technical know-how and there is also a guarantee of purchase of the

produce after harvest. In most cases, the minimum price of the produce is fixed

in advance. In the present scenario, the increasing number of farmers' suicides is

seen as a reflection of the fact that agriculture is no longer seen as a profitable

venture.


This makes the economic security offered by the contract farming very attractive.

The detractors of the contract farming believe that far from being a panacea for

agriculture sector, contract farming is likely to increase the problems.

The main concern is that the land, which is currently used to grow staple crops

like wheat and rice, will be used to grow crops required by the food-processing

industry, which also has a significant overseas market. The switch to contract

farming, therefore, leads to a rise in exports.

In fact, many corporates enter contract farming to fulfill their export obligations. It

is believed that contract farming would double agriculture exports from India to

$20 billion by 2010. Many believe that the rampant increase in contract farming

will eventually lead to loss of food security of the country, implying that the

country might become dependent on imports.

"We are bound to lose food security considering the way the government is

supporting contract farming without thinking of farmers. The main thing is that

farmers don't have any role to play in contract farming except providing the

corporates with labour and land. The government should also take into account

that the situation is very different in our country as compared to other countries.

About 70 per cent of the population is dependent on agriculture. The government

should involve the farmers in policy making otherwise their concerns are likely to

be left out," says Dr Kishan Bir Chaudhary of Bharat Krishak Samaj, which claims

to represent around 5,000 farmers in the country.

There is also a belief that it might also lead to the loss of natural seeds. Many

times, the crop required by the company is not recommended for that particular

area. This can also have negative implications on the quality of soil.


There have been numerous studies to examine the impact of contract farming on

farmers. Recently, Dr Sukhpal Singh of Indian Institute of Management,

Ahmedabad, conducted a study - 'Contract Farming for Agricultural

Development: Experience of the Indian Punjab and Northern Thailand'. He

observes in his study, "Contract farming, in a political economy, is one mode of

capitalist penetration of agriculture for capital accumulation and exploitation of

the farming sector by agri-business companies."

But for farmers, this is a matter of survival. It is also because public institutions

have failed to provide farmers with the essential protection and support required

for viability on a sustained basis.

"Farming was hardly a profit making venture but thanks to the company people

we also can afford to have some self-respect now. Of course, there are problems

associated with companies also like if a crop doesn't meet their requirements

they will not take it. For instance, if they want chilli, it has to be a particular variety

and it's not like anything will do," says Shirish Mane, who owns a 3-acre farm at

Loni Khand village, about 20 kms from Pune.

Certainly, not all contract farming is bad for farmers. It can lead to sustainable

cultivation practices. However, there is a need for the government to step in and

monitor the contract farming practices.


Map 1: Waste land area as percentage of geographical areain each state of India, 2007

Map 2: Percentage share of different states in total waste lands in India, 2007.


CORPORATE FARMING


Corporate farming is a term that describes the business of agriculture,

specifically, what is seen by some as the practices of would-be mega

corporations involved in food production on a very large scale. It is a modern

food industry issue, and encompassed not only the farm itself but also the entire

chain of agriculture-related business, including seed supply, agrichemicals, food

processing, machinery, storage, transport, distribution, marketing advertising and

retail sales. The term also includes the influence of these companies on

education, research and public policy, through their educational funding and

government lobbying effort.

Corporate farming is a fairly broad term deals with the general practices and

effects of a small number of large global corporations that dominate the food

industry. It does not refer simply to any incorporated agribusiness enterprise,

although most agricultural business today are in some way economically

connected to the dominant food industry players. Corporate farming is often

used synonymously with agribusiness.

CORPORATE FARMING IN INDIA

Corporate farming is not a new concept to India. Historical evidences show that

such practices have been prevalent since British colonization when the farmers

had contracts with East India Company.

Post independence period brought about many agrarian reforms, with green

revolution being an important milestone, changing the position of the country

from importer to exporter thus helping in attaining self-sufficiency but still their is

a need of further improvement.

Recognising the need of such improvement in the farming sector, several

corporates involved in agro-commodity trading, processing, exports etc.


2. Jamnagar Farms Pvt. Ltd.- a subsidiary of Reliance Industries (Mukesh Ambani group)

Gujarat, and Punjab; agro forestry,And horticultural crops

CORPORATE FARMING : A TOOL FOR GROWTH OR NOT

It is argued that large-scale corporate agriculture is more efficient than peasant

farming prevalent in the country. It leads to better allocative efficiency, induces

higher private investment in agriculture, and results in higher output, income and

exports (Mishra, 1997). The average size of the operational marginal holdings

was only 0.35 hectares and those of the small holdings 1.41 hectares in 1992

compared with 2.69 and 5.79 hectares respectively of the semi- medium and

medium category holdings and 15.41 hectares in the case of large category

holdings. The ownership holding averages for these categories were even

smaller with the exception only of large category holdings which was slightly

larger (Singh, 2005). In fact, it has been argued that the small and marginal

farms even in states like Punjab are not viable for sustaining a family and need

larger holdings (Johl, 1995).

These small holders should get out of farming if they are not able to move on to

more export-oriented and commercial crops like fruit and vegetables as it will not

be viable to grow food crops on small holdings. Even some farmer leaders like

Sharad Joshi of Shetkari Sanghatana argue that the state should facilitate the

exit of small and marginal farmers from farming by buying their land at market

prices and provide them capital and training to go for non-farm occupations. Only

those who have the mindset, technology, management, and financial resources

to face the challenge of the Second Green Revolution should be permitted to do

farming as an agribusiness (Joshi, 2006).


Further, small farms are highly fragmented. Land transactions have led to further

fragmentation making them non-viable in terms of resource use as well as family

sustenance. The costs of fragmentation included increased travel time between

farms and hence lower labour productivity, higher transportation costs of inputs

and outputs, negative externalities for land quality improvement like irrigation,

loss of land on boundaries and greater potential for disputes (Mani and Pandey,

1995).

A study of a Tamil Nadu village found that, of the small farmers (60% of all) who

owned less than three hectares of land each, 35% had 3-5 plots and 25% had 5-

10 plots and the remaining less than three plots. On the other hand, of all the

farmers in the village, only 20% farmers had more than five plots each, another

40% had 3-5 plots each and remaining less than three plots each. Thus, small

farms were somewhat more fragmented. Further, the study showed that

fragmentation had adverse impact on the technical efficiency and the production

of most of the crops, and consolidation led to large gains in technical efficiency.

But, still markets have not even led farmers to consolidate their operational

holding, if not owned holdings (Parikh and Nagarajan, 2004). Further, export-

oriented agriculture requires large investments which only big agri-business

enterprises can afford (Rangswamy, 1993). It is argued that India has been

exporting some agricultural products which are available for exports after

meeting domestic requirements. It is alleged that she has never produced for

export. This not only leads to instability of supplies in domestic markets, but also

a failure to meet export commitments, which results in losing the established

markets. Besides, India ends up going to the world market for importing for

domestic consumption as well.

It is here, that corporate farming is a must for stable production and export

performance (Singh, 1994).


It is also said that allowing foreign companies to buy and operate land would

open the doors to their technology in horticulture, food processing, etc. Further, if

there is no ceiling on the assets of a firm, why should there be such a restriction

on the farm firms or agribusiness enterprises?

BOTTLENECKS AND CRITICISMS

In all the existing (currently working) models of contract farming, farmers’

participation remains limited to production in the field - seeds, inputs, technology

packages and technical guidance through regular supervision are usually

provided by the contracting company. Critics in the industry are of the opinion

that the results are very promising in early years. Farmers benefit from improved

technology and higher productivity, quality and production. The contract price

does not appear to matter much in the early years. Once the farmers are

confident of being able to deploy new technology, problems start cropping up. If

the market price is more advantageous than the contract price, farmers renege

on the contract.

“The present legal systems make it impossible to enforce the performance under

contract” says Mr. Sharad Joshi, Former Chairman of the Task Force on

Agriculture, GoI and Founder of Shetkari Sanghatana, a peasants’ organization

in Maharashtra. Contract farming models can sustain in the long run only if the

initiative/empowerment comes from the farmers rather than the user (corporate).

Another moot point is that in the existing models, farmers are largely ‘price

takers’, while the contracting firm ‘makes’ the price.

Other criticisms leveled against contract farming in India include less generation

of employment, labour-saving farm practices, low level of commitment of

corporates over rural development, lack of transparency and communication etc.


Enforceability of the agreement, and standardisation and operationalisation of

contract farming agreements are the major bottlenecks plaguing contract-

farming ventures in India.

A LOT CAN BE DONE DESPITE THE ABSENCE OF A LEGAL FRAMEWORK

Maintain a proper database on farmers.

Incentives, rewards & public recognition.

Publicizing the names of defaulters in the locality of default.

Farmer encouraged to set own targets; assist with draft Of QC standards

etc.

Clearly allocate quantities for the fresh market.

Repeat defaulters are not considered again.

Maintains a high motivation level.

The social stigma usually suffices as a disincentive to default.

Promotes ‘‘ownership’’ of the business, builds loyalty over the long term.

The difference becomes apparent very quickly

RESEARCH METHODOLOGY


Type of research

Discriptive Research

Sorces of Data

Primary Data : Questionaire

Secondary Data : Internet and Magazine

Types of Surveys

Sample Survey

Sample Size : 100 respondents

Analysis & Interpretation of results

1. Research finding


QUESTIONNAIRE

Q1 What do you think about the present agricultural condition of India?

Highly satisfied

Satisfied

Not satisfied

Q2 Do you really think the input costs in agriculture is very high?

Yes

No

No idea

Q3 Do you really think the input costs in agriculture is very high?

Yes

No

No idea

Q4 Which scheme do you think gives the maximum help?

Debt waiver

Providing scheme and subsidy

Irrigated techniques on subsidy

Providing experts advice on various problems

Q5 Do you know about contract farming?

Yes

No

Q6.Do you think the contract farming can improve the present state of

agriculture?

Yes

No


Government Policy Support Technology

Leverage the ICAR, University System to provide region specific crop

solutions - make them part of public information domain.

Facilitate import of varieties / hybrids for contract farmers. Growth will be

led by productivity enhancement & market focus.

Incentivize Ph.D. Candidates in agri studies to work on contract farming

programs

Research system synergy with both farmers & private sector

Government Policies & Regulations

Make purchase interference by a third party in a contract farming program,

a cognizable offence.

Required - a quasi judicial system of contract enforcement.

Single tier regulation for contract farming at the state level.

Contract farming organizations are allowed to take out realistic &

deregulated crop insurance policies.


Government Fiscal Support

Collect no taxes from food processors involved in contract farming.

Compel them to invest in lieu in rural infrastructure & farmer upliftment to

the extent of tax saved.

Offer 150% deduction on investments made in the creation of extension

services for participating farmers linked to procurement of output.

Legislation needs to be clarified in order to determine whether or not it is

permissible to procure agricultural produce directly from the farmers.

No taxes or duties on import of agri equipment to be used in a registered

contract farming program.

Abolish all fees, taxes, duties, levies on procurement effected by a

registered contract farming program.


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.


BIBLIOGRAPHY AND WEBLIOGRAPHY

1. Agrawal, R C (2000): “Perspectives for Small Farmers in Developing

Countries

2. Benziger, V (1996):"Small Fields, Big Money

3. Chadha, G K (1996): Wastelands in Rural India: Policy initiatives and

programmes for their development

4. Dogra, B (2002): “Land Reforms, Productivity and Farm Size

5. Agri Business “The Analyst”(2007)

6. Parikh, K and H K Nagarajan (2004): How Important is Land

Consolidation?

7. Singh, S (2006a): Leveraging Contract Farming for Agricultural

Development in India

8. www.nabard.com

9. www.ministryoffinance.com

10. www.agriculturalaffairs.com

http://www.agriculturalaffairs.com/

http://www.ministryoffinance.com/

http://www.nabard.com/

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