CONTRACT FARMING
The Contract Farming Act has been implemented in Haryana since 10.09.2007. The regulatory agency for the same in Haryana is Haryana State Agriculture Marketing Board (HSAMB).
The Contract Farming activity taken up by Hafed, thereafter is detailed below:
Rabi 2007-08
Barley
District Number of Farmers Area covered Rabi 07-08
Gurgaon/Mewat 357 1500 (Acres)
Sirsa 170 800
Total 527 2300
Quantity Procured : 866 MT
Procurement Price: Rs.910-1210/qtl. Against min. assured buyback guarantee of Rs.800/- per quintal.
Desi Wheat
District Crop Number of Farmers Area covered Rabi 07-08
Gurgaon/Mewat Desi Wheat 28 100 (Acres)
C-306
Rohtak/Jhajjar -do- 19 200
Rewari -do- 3 18
Narnaul -do- 34 77
Total 84 395
Procurement Price: Rs.1300/qtl
Kharif 2008
Basmati Paddy
District Crop Number of Farmers Area covered Kharif 08
Kurukshetra Basmati Paddy 134 1042 (acres)
Karnal -do- 440 1616
Kaithal -do- 272 1457
Total 846 4115
Buyback Price offered to farmers: Rs.100/qtl over and above market price.
Hafed is in the process of installing a Turmeric Processing plant in Distt.Yamuna Nagar, with a capacity of 1400 ton/ year. The raw turmeric for processing in the plant will be bought from farmers under contract farming.
CONTACT FARMING OF BARLEY DURING RABI 2007-08.
Contract farming of Barley on 2300 acres have been facilitated by Hafed under tie up with SKOL Breweries which is one of the leading Breweries an owner of “Haywards” Brand. The 866 MT barley offered by contracting farmers is purchased by Hafed in the price range of Rs.910/- per quintal to Rs.1210/- per quintal against a minimum buy back price of Rs.800/- per qtl. previously guaranteed to the farmers. Good quality seed has been provided to the farmer which is sourced from Govt. agencies namely HSDC and State Farms Cooperation of India. Farmers are provided professional field extensions services free of cost by the SKOL.
Weather based insurance facility
Hafed facilitated weather based insurance coverage to contracting farmers through AIC. 50% of the premium for this insurance, which is Rs.287/acre, was paid by Hafed. 25 farmers having 145 acres availed this opportunity. All of these 25 farmers were benefited under this insurance by getting Rs.3780/- per acre as compensation.
DESI WHEAT C-306 RABI 2007-08
Hafed has done contract farming of Desi Wheat during Rabi 2007-08 on 395 acres of land in Distt. Rohtak / Jhajjar (200 acres), Gurgaon / Mewat (100 acre), Rewari (18 Acre) and Narnaul (77 acre). HSDC Certified seed of C-306 variety have been made available to the farmers. Free of cost Advisory services are provided to the farmers. The produce offered by contracting farmers has been purchased by Hafed at Rs.1300/- per quintal.
BASMATI KHARIF SEASON 2008.
The farmers under contract farming will be paid Rs.100/- per quintal over and above market price for all the quality compliant produce offered by contracting farmers to Hafed for buyback. Farmers will be provided free of cost professional advisory services and, good quality seed.
WEATHER BASED INSURANCE SCHEME
Facility of weather based insurance is being provided to willing farmers through Agriculture Insurance Co. of India under which farmers will pay only Rs.337/- per acre out of total premium rage of Rs.1124 - 1348/- per acre in district Kurukshetra, Karnal & Kaithal for sum insured of Rs.12,000/- per acre. Rest of the premium amount shall be shared equally by Hafed and Centre Govt. Under this insurance scheme, claims against excess rainfall, low rainfall and distribution of rainfall beyond abnormal limit is covered. 155 acres were registered under this scheme.
Previous Experience
Pending the legislation, Hafed did a humble beginning of Contract Farming to gain experience, in Kharif 2006. The details of work done since Kharif 2006, prior to the above detailed contract farming is given below.
DETAILS OF CONTRACT FARMING BY HAFED SINCE KHARIF 2006
Hafed, as always has worked for the benefit of farmers of Haryana at large. Contract farming too, is a step taken in the series of activities done with a motive of uplifting agriculture and farmers of Haryana.
Details of area covered under contract farming of various crops is as under:-
Basmati
District Crop Area covered Kharif 2006 Area covered Kharif 07
Kurukshetra Basmati Paddy 78 (acres) 123 (acres)
Karnal -do- 92 790
Kaithal -do- 625.5 1215
Total 795.5 2128
Actual Procurement Price: Rs.1950/qntl. Rs.2675/quntl. \
Desi Wheat
District Crop Area covered Rabi 06-07 (acres)
Gurgaon/Mewat Desi Wheat 201
C-306
Rohtak/Jhajjar -do- 260
Rewari -do- 90
Narnaul -do- 70
Total 621
Actual Procurement price paid: Rs.1320/qntl.
Moong
District Summer 07 Area covered-07
Faridabad Moong 500
Karnal -do- 300
Kaithal -do- 200
Rohtak -- --
Total 1000
Procurement rate 3000 per qtl.
BASMATI PADDY KHARIF 2006.
With a view to preserve the genetic purity of Basmati Paddy varieties HBC-19 and CSR 30 and to provide remunerative prices to the farmers by procuring it and marketing pure Basmati Rice under the Brand name of Hafed and to gain experience in contract
farming, Hafed first time started contract farming of Basmati Paddy in association with HSDC in District Karnal, Kaithal and Kurukshetra in Kharif-2006. Details of farmers covered under contract farming scheme and acres of land is as under:-
|
Name of District |
No. of farmers |
Area in acre |
|
Kurukshetra |
11 |
78 |
|
Karnal |
17 |
92 |
|
Kaithal |
101 |
625.5 |
|
Total |
129 |
795.5 |
Hafed guaranteed the growers to pay the premium of 10% over and above the modal price prevailing in Thanesar mandi between 15th to 30th November, 2006. Produce of farmers covered under the contract farming scheme was purchased by Hafed at Rs.1950/- per quintal, whereas the market rate during the season remained around Rs.1850/- per quintal.
BASMATI KHARIF SEASON 2007.
Hafed started the process of contract farming of CSR-30 Basmati (commonly known as Taraori Basmati). Agreement for 2128 acres in district Kaithal 1215 Acres)l, Karnal ( 790 acres) & Kurukshetra ( 123 acres) were made with the farmers. Farmers were assured a price of Rs. 100/- per qtl. more than the prevailing prices in Thanesar and Kaithal Mandies during peak procurement period. Accordingly, they were paid a price of Rs.2675/- per quintal.
DESI WHEAT C-306 (Rabi 2006-07)
Hafed also started contract farming on Desi wheat C-306 in association with HSDC in district Gurgaon / Mewat, Jhajjar, Rewari and Mohindergarh covering 621 acres of land as per details given below:-
|
Sr.No. |
Name of District |
No. of farmers |
Land in acre |
|
1. |
Gurgaon/Mewat |
39 |
201 |
|
2. |
Jhajjar |
50 |
260 |
|
3. |
Rewari |
22 |
90 |
|
4. |
Mohindergarh |
25 |
70 |
|
|
Total |
136 |
621 |
Certified seed of C-306 variety of wheat was made available to the farmers through HSDC for cultivation. Hafed provided free expert advisory services to the contract farmers and arranged crop insurance for them through ICICI Lombard 50% cost of which was borne by Hafed. Hafed paid a price of Rs. 1320/- per qtl. Of FAQ Desi Wheat to the contract farmers against the market rate of around Rs. 1200/- per qtl. Wheat procured after cleaning and grading is being sold in branded consumer packs of Hafed from selected retail outlets of Hafed at Panchkula, Delhi, Gurgaon, Faridabad and Taraori @ Rs. 438/- per bag of 25 kg. inclusive of all taxes.
SUMMER MOONG 2007
Hafed started contract farming of summer moong and entered into contract farming agreements with 210 farmers of Faridabad ( 500 acres), Karnal ( 300 acres) and Kaithal districts ( 200 acres) for Contract Farming of summer Moong covering an area of 1000 acres during summer season of 2007. Seed was supplied to the farmers by Hafed. Technical advisory services for best crop practices were also provided to the farmers free of cost. Hafed assured the farmers a price of Rs.3000 per quintal or the ruling market rate between the period from 15.6.07 to 30.6.07 which ever is higher.
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