ABOUT AGRICULTURE

Ours is a consortium, and we are engaged in integrated business development.

We have two pronged approach, to export with pleasure and represent overseas interest to import gap based merchandises to serve domestic demands and to our business interest group in India as well.

Under Agri Division 'we have dedicated strategies for serving our overseas clients with good quality produces at the best competitive prices'. We have dedicated Arrangement personnel to collect produces from farmers and sort it for export as per specifications, and pack it and send it to Airport, or sea Port with no loss of TRANSIT TIME.

We are located near Agriculture Collection and integrated Market centre in Sangli or other region. So we don’t entertain any middlemen for cargo sorting or collection. Thereby we take customized care to sort the produces 'export-worthy' and see that our customers are served well.

We also have arrangement with bulk farming community for regular cargo for certain produces. For example 'lemon'-we can supply as much as you want.

Regarding your requirement, we have asked few other details, plz send clarification along with your brief co profile and the product basket you plan to import at a regular basis.

Contract Farming

Contract farming arrangements of different types have existed in various parts of the country for centuries    for both subsistence and commercial crops.

The commercial crops like sugarcane, cotton, tea, coffee etc.

Have always involved some forms of contract farming. Even in the case of some fruit crops and fisheries,    contract farming arrangements, involving mainly the forward trading of commodities have been observed.

However, in the wake of economic liberalization, the concept of contract farming in which national or    multinational companies enter into contracts for marketing of the horticultural produce and also provide    technologies and capital to contract farmers has gained importance.

According to this, bipartite agreements are made between the farmer and the company and the latter    contributes directly to the management of the farm through input supply as well as technical guidance and    also markets the produce.

The main features of this type of contract farming are that selected crops are grown by farmers under a buy    back agreement with an agency engaged in trading or processing.

In such cases, the centralized processing and marketing agencies supply technology and resources,    including planting materials and occasional crop supervision.

Under such contracts, the farmer assumes the production related risks, which the price risk is transferred to    the company.

In some cases, the company also bears the production risk, depending on the stage of crop growth at which    the contract is made.

If the contract is made at flowering or fruiting stage, the company bears the production risks also.

In any case, the company bears the entire costs of transaction and marketing.

It is this variant of contract farming which is said to be one of the ways by which small farmers can    participate in the production of high value crops like fruits, vegetables, flowers etc. and benefit from market    led growth.

How can small farmers benefit from Contract Farming ?

Small farmers in India are generally capital starved and cannot make major investment in land    improvement and modern inputs.

Contract farming can fill up this gap by providing the farmers with quality inputs, technical guidance and    management skills.

Although the company deals only with the contract crop, the farmers' overall management skill may    improve, thereby helping him to raise the yields of both contract and non-contract crops.

From the standpoint of corporate bodies, farming reduces the supply risk, while the farmers enter into    contractual arrangements with companies in order to minimize price risks.

The company and the farmers enter into contracts to supply or purchase a specified quantum of the    commodity at agreed prices.

The agreed contract may be either formal or informal and may cover supply of inputs and marketing of    output.

By entering into contract, the company reduces the risk of non-availability of raw material and the farmer    reduces the risk of market demand and prices of his produce.

The inputs and services supplied by firms may include seeds, fertilizers, pesticides, credit, farm machinery,    technical advice, extension etc., or may involve only the supply of hybrid seeds and marketing of produce.

How can contract farming be successful?

It will work if the farmers have better bargaining power.

They have to be legally protected.

Furthermore, in contract farming, it is extremely important to understand the contracting operations.

The terms and conditions of the contract are crucial.

It has been found that quite often the farmer had not even seen the contract and did not know what the    terms and conditions were.

The contracts need to be more transparent.