More players may enter contract farming

The Cupboard determination on agreement farming will not only spur private investments in agriculture but also cost-free up farmers from the clutches of APMCs and encourage them to generate high-quality generate, say stakeholders.

At present, even the farmer producer organisations (FPOs) or producer corporations (PCs) are necessary to find permission from the APMC of their respective jurisdictions before moving into into any immediate sale arrangement underneath agreement farming.

Farmers can now have immediate association with the processors or exporters. This is a large raise for the FPOs that can have interaction in processing and marketing and advertising pursuits, explained Kuldeep Solanki, in cost CEO of Ahmedabad-dependent Gujpro Agri-Enterprise Consortium producer corporation that has more than 30 FPOs involved with it, covering about forty five,000 farmers across the Condition.

Sport-changer

The government’s determination to supply a degree participating in area to farmers by allowing for them to have interaction with processors, aggregators, vendors, and exporters with out exploitation is found as a sport changer in farm trade.

“This opens up new avenues for processing and marketing and advertising while it also opens a warehousing avenue for farmers. This is a large gain,” Solanki explained. “However, the next action will be to do potential creating of these FPOs by connecting them with acceptable ecosystem. Increase their marketing and advertising and processing capabilities. There is a need to supply handholding to compete with the founded gamers,” he additional. “It will spur much more investments into agreement farming,” explained Pankaj Khandelwal, CEO of INI Farms, the premier exporter of pomegranates and bananas.

“It will bring in a good deal much more entities that are severe about agreement farming, who want to enhance the high-quality of generate. Also, it will help encourage farmers in developing harmless food stuff,” explained Khandelwal, whose business will work with more than three,000 farmers.

He additional that the commercial and authorized framework, mostly the dispute resolution at the local degree, is a creative resolution.

Karthik Jayaraman, Co-founder, Waycool, explained, “We are ready for facts. But directionally, it is a beneficial action.”

Have to have for clarity

Kurubur Shantkumar of Raitha Mitra FPO explained agreement farming with a pre-decided pricing will be a welcome action.

Having said that, there is a need for much more clarity on the dispute resolution system and who would compensate for possible loss of crop or high-quality throughout the cropping cycle due to erratic local weather pattern or pest assaults, he explained.

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