The Hindu Business Line : Contract farming picking up in Dindigul district

Farmers raising two major rain-fed crops, namely, maize and cotton, have entered into a tie-up with cooperative organisations and private companies under the system, said to be beneficial to both the farmers and the buyers.

While the National Agricultural Cooperative Marketing Federation of India (NAFED) has gone in for an agreement with the farmers to procure maize at Rs 525 per quintal, the private companies have preferred tie-ups with cotton growers with a minimum support price of Rs 1,850 per quintal, with the Agriculture Development playing a lead role in firming up the contracts.

The NAFED has registered 557.5 hectares and the private companies have netted 575 acres. The private companies, besides arranging for bank loans and insurance, have also agreed to arrange for procurement and supply of packing materials.

According to the Assistant Director of Agriculture (Oilseeds), Mr G. Natarajan, about 95 per cent of summer crop areas under maize and cotton have come under the contract farming system in the district.

The harvesting of the summer crops would begin in May or June.

The beneficial aspect is that even during a bumper harvest and a slide in market price, the farmers would not be affected.

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