Contract Farming, What Is The Concept Of Contract Farmingbanner
Contract Farming, What Is The Concept Of Contract Farming

What Is The Concept Of Contract Farming

Contract Farming, What Is The Concept Of Contract Farming
Contract Farming, What Is The Concept Of Contract Farming

• The concept of contract farming refers to a system of farming in which bulk purchasers including agro-processing firms and exporters enter into a contract with farmers to purchase a specific quantity of any agricultural commodity at a pre-agreed price.
• It’s a two way process- farmers grow and supply the product to the buyer at predetermined quantity and prices, while the buyers agree to buy Product from farmer at a predetermined price.
• The contract farming functions as a tool to minimise price risk for farmers.
• It aims to reduce post harvest losses.
• Farmer Producer Organisations have a major role in promoting Contract Farming And Services Contract.
• It seeks to increase private sector investment in agriculture.

Leave a Reply

Your email address will not be published.