
About Contract Farming
Contract farming is an agreement between the producer (farmer or farmer organization) and the buyers (exporters, processing units) mutually agreeing upon the price, quality, and quantity of the produce which will be exchanged after the harvesting.
Before the Plantation is done a fixed rate is been provided by the agricultural marketing company to the farmer. under the contract the farmer cultivates his land, technical information related to the crop is provided to the farmer by the marketing company, Crop production for during the contract the farmer has to pay all the expenses incurred such as manure, pesticides, irrigation, etc. the farmer's product is purchased from the farm by the agricultural marketing company, Agro products will be purchased from the farmer's farm by the marketing company, payment is made to the farmer at the time fixed by the marketing company.