The Hindu Business Line : FICCI for contract farming, direct purchase from farmers

New Delhi, July 1As the Central Government starts formulating model rules under the State Agricultural Produce Marketing (Development and Regulation) Act 2003, industry chamber FICCI has called for facilitating direct procurement of produce from farmers’ fields and making contract farming conducive to large-scale adoption.

According to a survey by the chamber, survey, which drew responses from the corporate sector, it is imperative for States to upgrade infrastructure, link markets with the futures market, and rationalise tax structure, market fee and the licensing system.

The Act requires all the sale and purchase of produce to take place inside mandi premises through open auction or second purchase from commission agents.

The purchasers or private bodies are neither allowed to buy directly from a farmer or set up a mandi.

The survey recommends that purchasers be allowed to procure directly from growers and set up private market yards.

Addressing efficacy

The efficacy of direct agricultural marketing infrastructure facility can be increased by providing market users common facilities for proper weighing, cleaning, grading and packaging of agricultural produce being brought to the market yard by farmers for sale.

A common code of conduct and modalities with regard to ownership, operation and need-based infrastructure will have to be prepared and circulated to spread the concept of direct marketing by farmers, according to the Chamber.

Both private and Government-owned mandis should be allowed to operate simultaneously to encourage competition and give farmers more options and alternatives for selling their produce.

Such markets should operate outside the purview of the Agricultural Produce Marketing Act and be owned by professional agencies in the private sector, wholesalers, retail trade associations and corporates, joint ventures and other investors, according to the Chamber.

Contract farming

To promote contract farming, it should be made legal, according to the Chamber. Government should only play an enabling role by legal provisions and institutional mechanisms to facilitate smooth functioning of the contract system.

Also, a mechanism should be developed to provide bank finance to small and marginal farmers on easy terms, according to the Chamber.

Contracts should be managed in a more transparent and participatory manner so that there is a greater social consensus in handling contract violation from either side without getting involved in the costly as well as lengthy process of litigation.

More Stories on : Contract Farming | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NMCE fixes circuit filter at 2% for rubber futures

Mumbai is not rained out just yet

FICCI for contract farming, direct purchase from farmers

Cadbury India in pact with TN Horticulture Dept

Good demand for CTC teas

Bullish reversal likely in gold

Gold medium term prospects positive

Nabard jubilee seminar to focus on agri credit

Upward trend in pepper

Cocoa prices ruling steady

Vizag rythu bazaar to make way for multiplex