Lok Sabha Question No. 6 (STARRED), answered on 2021-02-02
Subject: Courses on Contract Farming
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Hanuman Beniwal

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURAL RESEARCH & EDUCATION

## LOK SABHA STARRED QUESTION NO. 6 TO BE ANSWERED ON 02/02/2021

## COURSES ON CONTRACT FARMING

## *6. SHRI HANUMAN BENIWAL:

Will the Minister of AGRICULTURE & FARMERS WELFARE d`f'k vkSj fdlku dY;k.k ea=h be pleased to state:

- (a) whether  any  courses  regarding  contract  farming  are  being  run  in  educational departments of various agricultural institutes under the Union Government/ICAR etc.;

- (b) if  so,  the  details  including  location  of  such  institutes  along  with  the  time  since when the said courses are being run;

- (c) whether any research has been conducted regarding contract farming sector; and

- (d) if so, the details of the case studies/research papers in this regard?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE d`f'k vkSj fdlku dY;k.k ea=h (SHRI NARENDRA SINGH TOMAR)

(a) to (d)

: A Statement is laid on the Table of the House.

*******

## STATEMENT IN RESPECT OF PARTS (a) to (d) OF LOK SABHA STARRED QUESTION NO. 6 TO BE ANSWERED ON 02/02/2021 REGARDING 'COURSES ON CONTRACT FARMING'

(a) Yes, Sir.  Contract Farming is being offered in Under Graduate (UG) and PostGraduate (PG) programmes of Agriculture and Allied Sciences as a part of the following courses:

1. Entrepreneurship Development and Industrial Consultancy (UG)
2. Fundamentals of Extension and Rural Development (UG)
3. Agricultural Marketing & Price Analysis(PG)
4. Market Led Extension Management (PG)

(b) The courses of UG programmes, developed by the Fifth Deans' Committee, are being offered by all the agricultural universities since 2016.

The  Division  of  Agricultural  Economics,  ICAR-Indian  Agricultural  Research Institute (IARI), Pusa, New Delhi is running a course on 'Agricultural Marketing & Price Analysis'  where  contents  related  to  reforms  in  agricultural  marketing,  Agricultural Produce  Market  Committee  (APMC)  regulated  markets,  direct  marketing,  contract marketing, supply chain management etc are being taught to PG students specializing in the  discipline  of  Agricultural  Economics.  This  course  is  being  regularly  offered  in  the Division since more than 10 years.

In Division of Agricultural Extension at IARI the concept of Contract farming is discussed as an approach in the course on 'Market- led Extension Management'. This course is being regularly offered in the Division since more than 10 years. Further, the Contract Farming was offered as an elective subject for two Batches of  Post Graduate Diploma in Management (Agriculture) (PGDMA) during 2009-11 and 2010-12 at ICARNAARM, Hyderabad.

- (c) Yes, Sir.
- (d) The details of studies conducted on contract farming are listed below:
1. A Case Study on Suguna Poultry Production through Contract Farming in Andhra Pradesh conducted by ICAR-National Academy of Agricultural Research Management, Hyderabad
- Poultry growers entered into contract farming model were benefited in terms of
- a) higher income
- b) assured market
- c) price stability
- d) credit facility in kind

- This study highlighted the following advantages:
- a) good income opportunity
- b) quick realization of working capital
- c) marketing of the produce
- d) price incentives in case of fluctuations
- e) improving the living standards of farmers
2. Assessment of Socio-Economic Status of Contract and Non-Contract Goat Farmers of  Odisha:  A  Comparative  Study  by  ICAR-Indian  Veterinary  Research  Institute, Izzatnagar- Bareily, Uttar Pradesh

The study demonstrated the following advantages:

- Under contract farming in goat husbandry, the net returns are more as compared to non-contract farming.
- Contract goat farming was adopted by the landless and marginal tribal farmers.
- Contract goat farming had encouraged resource poor people to adopt goat farming whose ancestors had not reared goat.
3. Study carried  out  contract  and  non-contract  broiler  farming  system  in  Azamgarh and  Varanasi  districts  of  Uttar  Pradesh  by  ICAR-Indian  Veterinary  Research Institute, Izzatnagar- Bareily, Uttar Pradesh
- The study highlighted the following:
- a) Contract  farmers  were  assured  of  genuine  inputs  in  the  form  of  feed,  chick crops and veterinary aids
- b) Compared  to  contract  farmers,  the  non-contract  farmers  were  affected  by marketing related problems
- Non-contract farmers have faced the following risks:
- a) investment risk,
- b) production risk and
- c) market risk.
4. Study  on  contract  dairy  farming  by  ICAR-Indian  Veterinary  Research  Institute, Izzatnagar- Bareily, Uttar Pradesh
- The role of contract dairy farming involves government and private participation along with the rural workers.
- It helps in getting good quality, sufficient, timely and cost-effective raw material.
- It  increases  the  cost  efficiency  and  uniformity  of  products  by  coordination  and management at each production stage.
- Contract  farming  in  dairy  sector  helps  in  infrastructure  facility  development, transfer  of  technology  and  sectoral  cum  target  oriented  policies  and  programme with a basic thrust towards food security, poverty alleviation and rural livelihood.

5. Impact of contract farming on basmati rice cultivation by ICAR-Indian Agricultural Research Institute, New Delhi
- Major factors responsible for farmers' participation in the contract farming were:
- a) Company guidance for scientific method of cultivation
- b) Higher price for produce received from contracting firm
- Farmers were found willing to go for the contract farming if it includes buy-back arrangement.
- Net returns over total cost was Rs 99,587/ha in contract farming as compared to non-contract (Rs 86,920/ha) farming.

*******