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LATEST NEWS UPDATES | Contract farming is yet to make a mark in Punjab; here is why -Nivedita Sharma and Gurpreet Singh

Contract farming is yet to make a mark in Punjab; here is why -Nivedita Sharma and Gurpreet Singh

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published Published on Jun 27, 2022   modified Modified on Jun 29, 2022

-Down to Earth

Suitable policies need to be in place in order to enhance the prospects for contract farming in the state

A 52-year-old, better-off farmer from Sehjo Majra in Ludhiana district of Punjab has been practising contract farming for more than 20 years. This farmer contracts with four companies — Pepsico Pvt Ltd, Pagro Foods Ltd, Fieldfresh Foods Pvt Ltd and Sungro Seeds Pvt Ltd.

However, his longest association has been with Pepsico, as he finds it most trustworthy and gets his payments on time. This long association with the system, seen by many as a promising avenue for increasing the incomes of small farmers and which has received a mixed reaction from academia and research, is worth probing into.

Companies provide technical support under the buy back arrangement feature of contract farming and field officers visit the field every 15-20 days. Seeds are provided at market prices. Companies also prescribe cultivation practices.

Companies hold meetings with farmers to discuss about the selection of crops for the next year, cultivation practices, levels of irrigation, varieties of seeds, pesticides, etc.  

We talked to other farmers and learnt that another was “growing potato for Pepsico, sweet corn for Pagro Foods, radish seed for Sungro Seeds, chilly and baby corn for Fieldfresh”.

Please click here to read more. 


Down to Earth, 27 June, 2022, https://www.downtoearth.org.in/blog/agriculture/contract-farming-is-yet-to-make-a-mark-in-punjab-here-is-why-83454


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