Contract farming is good for farmers

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.

First online trading of horticulture crops to start in 2007 December

Pilot electronic trading in mangoes conducted in June 2007 at the Regulated Marketing Committee delivery center at Pochampalli, Krishnagiri District, Tamil Nadu.

Safal National Exchange (SNX), promoted by Mother Dairy (National Dairy Development Board) jointly with private companies, is planning to launch nationwide online trading in fruits and vegetables in December 2007.

• Initial launch planned to cover apple, mango, banana, potato, onion and tomato.
• Actual traded prices will be displayed on the trading screen in markets across the country.
• Farmers on bringing their produce will grade and sort them at the delivery center as per the quality standards specified by SNX.
• SNX will undertake an inspection and issue a quality certificate to the farmers. SNX will also facilitate warehousing and logistics facility. Products that meet the required norms including size, quality, colour and shape alone will be allowed for trading.
• The delivery needs to be completed before the next day of trading. A penalty of 10 per cent would be imposed on farmers if they failed to deliver the produce after trading.
• Delivery of products to the buyer would take place once the payment is received. A penalty of 10 per cent would also be imposed on buyers if they failed to pay and lift the commodity after trading.
• SNX will pay the farmers after they receive the payment from the buyer and process it.

Benefits to farmers:

• Farmers can know the prices being realized across the country. They will have the option to conclude price for their produce for sale prior to harvest.
• Fewer middle men and lower transaction cost.
• Payments are guaranteed by SNX.
• Quality certification protocol administered by SNX.
• Improvement in post harvest practices for better shelf life and quality of grading, packing and overall delivery, match with rapidly rising expectations of quality by consumers.

Farmers can get commodity pricing, news and weather conditions via SMS messages on cell phones in Hindi, English and local languages!

Reuters has launched a live service to provide farmers in the country with customised updates via SMS messages on cell phones.

• Commodity pricing, news and weather conditions.
• In Hindi, English and local languages.
• Three times a day.
• This service is available only to users on GSM networks.
• Will be available in Maharashtra initially. To be extended to Punjab, Gujarat and Karnataka by next year.
• Onion and corn prices will be provided initially. Oranges, soyabean and wheat to be added.
• Around 4,000 farmers have already subscribed to it.
• Monthly cost of Rs 60.

Small businesses, artisans, cooperatives, self help groups and others can sell on the internet from small towns and villages

eBay India is helping sellers from non-Metro towns sell jewellery, apparel & accessories, home furnishing, metal and woodwork on the internet.

• Read more details provided by Deepa Thomas, Manager (Corporate Communications) of eBay India. Read about how a retired government employee and his wife built a successful business selling stamps on eBay.
• What is eBay?
• How do sellers get paid?
• 5-steps to selling on eBay.
• In its short history, eBay has established itself as a legitimate marketplace for all kinds of goods. Buying and selling via Internet auctions have become a way of life for many individuals and businesses.
• Some eBay sellers, however, do not get the best results from their auctions because many continually make costly errors in their listings. Here are 10 of the most common errors and tips for avoiding them.

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