mega foor parks

click here » click here » click here » click here »

Contract Farming

Back to GFPIP index

Gujarat Food Processing Industry Policy

One of the crucial requirements of agro industry is to get the supply of consistent and quality raw material as per their specifications. At present, raw material is procured by such industry from market place, which often has variable quality and also at times required quantity is not available. This situation has resulted in discouraging optimum size of processing units to come up and have advantage of economy of scale. Besides, small units in food sector are unable to create brand equity and therefore often suffer in market place.

The Industry has also represented from time to time that unless quality and consistent raw material is available as in tea, rubber or sugarcane, large units in food processing sector, particularly in fruits and vegetables sector are unlikely to be set up.

In consideration of above, agro processing industries will be encouraged to enter into contract farming arrangements either directly or through group of farmers, value added centres, agro service centres or cooperatives. To facilitate such arrangement, the State Government will accord priority in sanction of agriculture subsidy under its various schemes to the concerned farmers and will also permit the routing of such subsidy through such centres/groups/co-operatives, subject to the consent of member farmers. This will also result in optimization of subsidy and cluster development of agriculture. These organisations may provide necessary inputs to the member farmers such as planting material, seeds and other inputs, may guide farmers in agronomic practices and may also take crop insurance on behalf of the member farmers.

Legal Department will also examine the feasibility of a legal enactment to facilitate contract farming arrangement.

Back to GFPIP index