Contract Farming for Medicinal Plants

Present scenario of medicinal plants Increasing popularity of medicinal plants Unequal demand and supply ratio Illegal harvesting of medicinal plants from forests

Increasing popularity of medicinal plants

Unequal demand and supply ratio

Illegal harvesting of medicinal plants from forests

Present scenario of medicinal plants- contd….. In order to overcome this shortage of supply and cater to the ever increasing demand, commercial cultivation is most essential. . The superlative solution for the commercial cultivation of medicinal plants is contract farming.

In order to overcome this shortage of supply and cater to the ever increasing demand, commercial cultivation is most essential. .

The superlative solution for the commercial cultivation of medicinal plants is contract farming.

What is Contract farming? An Agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices.

An Agreement between farmers and

processing and/or marketing firms for

the production and supply of agricultural

products under forward agreements,

frequently at predetermined prices.

Areas covered under contract farming Market provision Resource provision Management specifications

Market provision

Resource provision

Management specifications

Benefits to the Farmer Assured markets & returns Risk elimination due to price fluctuation Timely transport Reduces exploitation from middlemen Reduces lending from private money lenders Adequate input supply Employment generation

Assured markets & returns

Risk elimination due to price fluctuation

Timely transport

Reduces exploitation from middlemen

Reduces lending from private money lenders

Adequate input supply

Employment generation

Benefits to the Company Uninterrupted & Regular Flow of Raw Material Protection From Fluctuation In Market Pricing. Long Term Planning Made Possible. Builds Long Term Commitment Dedicated Supplier Base Generates Goodwill For the Organization

Uninterrupted & Regular Flow of Raw Material

Protection From Fluctuation In Market Pricing.

Long Term Planning Made Possible.

Builds Long Term Commitment

Dedicated Supplier Base

Generates Goodwill For the Organization

Contract concept A new concept ???

THE GOI HAD RUN THE LARGEST CONTRACT FARMING MODEL THE GREEN REVOLUTION

And today there is a need for such a revolution in medicinal plants through contract farming

The first step towards Contract farming of medicinal plants Reliance Life Science (RLS) Dabur India Ltd.

Shortfalls in Contract farming Small size of farmer landholdings Need to contract with a larger number Lack of a comprehensive crop insurance scheme to protect against natural calamities

Small size of farmer landholdings

Need to contract with a larger number

Lack of a comprehensive crop insurance scheme to protect against natural calamities

Key preconditions for success Government Support :- Suitable laws of contract and an efficient legal system Awareness of unintended consequences of regulation and avoid tendency to over-regulate Provision of research and extension Take steps to bring together agribusiness and suitable farmers

Government Support :-

Suitable laws of contract and an efficient legal system

Awareness of unintended consequences of regulation and avoid tendency to over-regulate

Provision of research and extension

Take steps to bring together agribusiness and suitable farmers

Key preconditions for success Focus Agriculture Universities towards developing crop and region specific agendas. Introduce insurance policies to provide comprehensive coverage of the crops including loss of profit to the farmers. Make it obligatory for Agricultural Students to work on contract farming programmes as a part of their curriculum

Focus Agriculture Universities towards developing crop and region specific agendas.

Introduce insurance policies to provide comprehensive coverage of the crops including loss of profit to the farmers.

Make it obligatory for Agricultural Students to work on contract farming programmes as a part of their curriculum

Key preconditions for Success- Contd.. Making purchase interference by a third party in a contract farming, a cognizable offence. Form a Registered Contract Farming Programme Abolish all fees, taxes and duties on procurement effected. Exempt taxes and duties on import of agri equipments. Eliminate formalities in import of varieties / hybrids.

Making purchase interference by a third party in a contract farming, a cognizable offence.

Form a Registered Contract Farming Programme

Abolish all fees, taxes and duties on procurement effected.

Exempt taxes and duties on import of agri equipments.

Eliminate formalities in import of varieties / hybrids.

To sum up….. Collaborative efforts of farmers, companies and the government in contract farming of medicinal plants will add to the over-all socio-economic developments of nations.

Collaborative efforts of farmers, companies

and the government in contract farming of

medicinal plants will add to the over-all

socio-economic developments of nations.

Thank You