Contract Farming

5,514 views

Published on

Contract Farming of medicinal plant, process of contract farming

Published in: Business, Technology
3 Comments
3 Likes
Statistics
Notes
No Downloads
Views
Total views
5,514
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
360
Comments
3
Likes
3
Embeds 0
No embeds

No notes for slide

Contract Farming

  1. 1. Contract Farming for Medicinal Plants
  2. 2. Present scenario of medicinal plants <ul><li>Increasing popularity of medicinal plants </li></ul><ul><li>Unequal demand and supply ratio </li></ul><ul><li>Illegal harvesting of medicinal plants from forests </li></ul>
  3. 3. Present scenario of medicinal plants- contd….. <ul><li>In order to overcome this shortage of supply and cater to the ever increasing demand, commercial cultivation is most essential. . </li></ul><ul><li>The superlative solution for the commercial cultivation of medicinal plants is contract farming. </li></ul>
  4. 4. What is Contract farming? <ul><li>An Agreement between farmers and </li></ul><ul><li>processing and/or marketing firms for </li></ul><ul><li>the production and supply of agricultural </li></ul><ul><li>products under forward agreements, </li></ul><ul><li>frequently at predetermined prices. </li></ul>
  5. 5. Areas covered under contract farming <ul><li>Market provision </li></ul><ul><li>Resource provision </li></ul><ul><li>Management specifications </li></ul>
  6. 7. Benefits to the Farmer <ul><li>Assured markets & returns </li></ul><ul><li>Risk elimination due to price fluctuation </li></ul><ul><li>Timely transport </li></ul><ul><li>Reduces exploitation from middlemen </li></ul><ul><li>Reduces lending from private money lenders </li></ul><ul><li>Adequate input supply </li></ul><ul><li>Employment generation </li></ul>
  7. 8. Benefits to the Company <ul><li>Uninterrupted & Regular Flow of Raw Material </li></ul><ul><li>Protection From Fluctuation In Market Pricing. </li></ul><ul><li>Long Term Planning Made Possible. </li></ul><ul><li>Builds Long Term Commitment </li></ul><ul><li>Dedicated Supplier Base </li></ul><ul><li>Generates Goodwill For the Organization </li></ul>
  8. 9. Contract concept A new concept ???
  9. 10. THE GOI HAD RUN THE LARGEST CONTRACT FARMING MODEL THE GREEN REVOLUTION
  10. 11. And today there is a need for such a revolution in medicinal plants through contract farming
  11. 12. The first step towards Contract farming of medicinal plants Reliance Life Science (RLS) Dabur India Ltd.
  12. 13. Shortfalls in Contract farming <ul><li>Small size of farmer landholdings </li></ul><ul><li>Need to contract with a larger number </li></ul><ul><li>Lack of a comprehensive crop insurance scheme to protect against natural calamities </li></ul>
  13. 14. Key preconditions for success <ul><li>Government Support :- </li></ul><ul><ul><li>Suitable laws of contract and an efficient legal system </li></ul></ul><ul><ul><li>Awareness of unintended consequences of regulation and avoid tendency to over-regulate </li></ul></ul><ul><ul><li>Provision of research and extension </li></ul></ul><ul><ul><li>Take steps to bring together agribusiness and suitable farmers </li></ul></ul>
  14. 15. Key preconditions for success <ul><li>Focus Agriculture Universities towards developing crop and region specific agendas. </li></ul><ul><li>Introduce insurance policies to provide comprehensive coverage of the crops including loss of profit to the farmers. </li></ul><ul><li>Make it obligatory for Agricultural Students to work on contract farming programmes as a part of their curriculum </li></ul>
  15. 16. Key preconditions for Success- Contd.. <ul><li>Making purchase interference by a third party in a contract farming, a cognizable offence. </li></ul><ul><li>Form a Registered Contract Farming Programme </li></ul><ul><li>Abolish all fees, taxes and duties on procurement effected. </li></ul><ul><li>Exempt taxes and duties on import of agri equipments. </li></ul><ul><li>Eliminate formalities in import of varieties / hybrids. </li></ul>
  16. 17. To sum up….. <ul><li>Collaborative efforts of farmers, companies </li></ul><ul><li>and the government in contract farming of </li></ul><ul><li>medicinal plants will add to the over-all </li></ul><ul><li>socio-economic developments of nations. </li></ul>
  17. 18. Thank You

×