Under the able leadership of Honorable chief minister Shri. Narendra Modi and Agriculture Minister Shri Dileepbhai Sanghani, Gujarat, is making rapid progress in developing infrastructure, irrigation, electricity, and productivity in agriculture sector. Gujarat is rich in resources. State has varied soil composition ranging from arid desert of Kutch to highly fertile land of South Gujarat with good water facility suitable for growing many crops.
In order to facilitate industries to procure specific quality of agro- commodity directly from the farmers the state govt, keeping in tune with the reforms of Model Act 2003, has adopted " Contract Farming " scheme from dt. 31/3/2005. While adopting contract farming, the prime focus of the Gujarat government is two prong, firstly farmers of Gujarat can get benefit of latest farming technology, improve quality and quantity of commodity, get price security and an opportunity to diversify in other crops. On the other hand, processors can get quality and variety of commodity as per their market requirement at specific stable price.
What is Contract Farming
Contract farming is a written commitment or an agreement made between the farmer and the buyer for cultivation and sale of specific quality, quantity, grade, and variety of commodity at predetermined price.
Many safeguards for the buyer as well as farmers in the "Contract Farming" Scheme in Gujarat
Tripartite Agreement: Three parties
viz. Contract Sponsor, Farmer and
concerned Market committee shall be
signing the Agreement to ensure that all
the parties adhere to the terms and
conditions of the contract.
APMC as a Facilitator: APMCs having
long standing relationship of trust with
local farmers shall play the facilitative role
in mobilizing farmers, make them
understand the concept and explain the clauses of the Agreement. APMCs in Gujarat are very strong, having multi facilities at the yard. As a local body they have better knowledge of local farmers, terrain, soil, climate, irrigation & other agriculture scenario of the surrounding area
Period of contract: The period of contract
can be seasonal, 1 year or upto 5 yrs. In
case of Long-term crops, it can extend for
more years as mutually agreed between
farmer and purchaser, surrounding area.
Technical and Financial support: The farmers can get advantage of
technical research done by sponsor and may also get financial support in
form of seeds, fertilizer, including harvesting techniques.
Details of Commodity: For the smooth transaction of the deal and
preventing future decent, the agreement contains all-important details
like type & quality of commodity, crop insurance, payment terms, etc.
Dispute Redressel system: All Disputes to be settled only through
"Arbitration". Judgment on dispute between farmer and purchaser is to be
given within 1 month. The Managing Director of Gujarat State Agricultural Marketing Board shall act as an "Arbitrator".
