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All these years, Mr Abdul Aziz Mondal, a potato farmer, opposed contract farming. However, midway during the sowing season (October-November), when he saw prices tumbling in the market for the second year in a row, he changed his stance.
The middle-aged marginal-farmer from Abhirampur village in Hooghly, 90 km from Kolkata, rushed to sow ‘Atlanta' variety potato — supplied by PepsiCo India for manufacturing flakes and other Frito-Lay branded products — on a part of his four bigha (1.32 acre) land.
Mr Mondal regrets sowing the usual ‘Jyoti' variety on a larger portion of his land, as he is likely to lose heavily at the current market price of Rs 200 a quintal. “Next year, I will prefer to go entirely for ‘Atlanta' farming (for PepsiCo),” he says.
A blight attack in 2008-09 that damaged nearly 50 per cent of crop and the subsequent price crashes due to bumper crop have convinced an increasingly larger section of potato farmers in the locality to accept a steady return through contract farming than blowing away their wealth in the hope of an elusive windfall gain.
Steps up procurement
According to the West Bengal Cold Storage Association (WBCSA), during the last three years, the area under contract farming for PepsiCo has increased by over two-and-a-half times to about 6,000 acres in 2011-12.
The number of farmers associated has also increased by over 50 per cent to around 10,000.
Bengal is reportedly the largest supplier of potatoes to Frito-Lay's India operations. According to Mr Ram Pada Pal, president of WBCSA, the company nearly doubled its procurement from the State to 42,000 tonnes in 2010-11.
When contacted, a company spokesperson confirmed the procurement from Burdwan, Birbhum, Hooghly, Bankura and Midnapore (West) districts in West Bengal. “Owing to good growth, our potato requirement has been growing rapidly, requiring us to expand our agricultural footprint,” he said. The company is also reportedly stepping up its processing capacity in the State.
Mr Nazibur Rahman Mondal, a relatively larger farmer, confirms the trend. “Last year I cultivated Atlanta for PepsiCo on eight bighas (2.64 acres) at Rs 600 a quintal, substantially higher than the market price of Rs 360-400 a quintal. This year I have sown Atlanta on 22 bighas (7.26 acres),” he said.
Other players joining
The increased interest has also had its share of disappointments. According to Sajan Mondal, a liaison between PepsiCo and the farmers, there was more demand for ‘Atlanta' seeds this year than supply.
On its part, Pepsico has been buying the potato from farmers without fail.
Taking a cue from the trend, a few local brands have reportedly started engaging themselves in contract farming of potatoes in a small way in Abhirampur and its neighbouring villages.
“Gee Pee Foods — the makers of Pogo brand of chips and flakes — has been procuring some 5,000 tonnes of ‘Atlanta' and ‘Chipsona' varieties at contracted prices for the last couple of years,” Mr Pal said.
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