Prakash Kulkarni of Vilaspur in Bidar taluk, Karnataka, who has been growing Coleus forskohlii (makandi beru in Kannada) on a contract basis for four seasons.
According to a recent study, profits earned by contract farmers are more than that of non-contract farmers.
- The advantage that accrued to contract farmers was mainly due to savings in production and marketing costs.
- The contractor often provides seeds and other inputs as well as technical know-how.
- The farmers are often trained in improving quality through better post harvesting techniques.
- Contract farmers are being offered relatively higher prices than the prevailing market prices mainly for better quality and as an incentive for ensuring a regular supply.
Other examples of contract farming:
- Marigold is being grown in Vallam and Sengipatti in Thanjavur district of Tamil Nadu.
- Coleus forskohlii and turmeric are being grown in Salem district of Tamil Nadu.
- The National Agricultural Co-operative Marketing Federation (Nafed) has begun a pilot project to grow potato through the contract farming route in Indore.
- Agro Tech Foods Ltd is planning to go for contract farming to produce sweet corn most likely in Warangal district.
- Godrej Agrovet Ltd intends to take up cultivation of oil palm under contract farming in Joida, Karwar and Yellapur taluks of Uttara Kannada district.
- Hatsun Agro Product Ltd has signed up with SBI to provide loans to dairy farmers for a contract farming programme.
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