Contract farming is a kind of system in which bulk purchaser enters into contract with farmers. It includes agro- processing, exporting and trading units. They purchase a specified quantity of any agricultural commodity at pre agreed price. Sponsor provides all kind of production support to the contracted farmers. This include extension service also.
Advantage:
- This will help to provide sustainable source of livelihood. It will provide an alternative market mechanism.
- Exposure to international markets.
- More FDI in agro processing industries.
- Employment generation in Food processing industries
- Improvement in cold supply chain and hence reduction in wastages.
- Pooling of land will help in utilising the land properly as 86% of the farmers in India are small and marginal farmers.
- Farmers no longer have to transport their produce to the mandis and hence reduction in the cost.
- Better access to technology, crop diversification, extension services
Government of India has recently passed Model Contract farming act, 2018 for better centre-state co operation on land lease. It will help to provide an ecosystem for the growth of contract farming.
CGPCS Notes brings Prelims and Mains programs for CGPCS Prelims and CGPCS Mains Exam preparation. Various Programs initiated by CGPCS Notes are as follows:-