The Hindu : Contract farming policy

Online edition of India's National Newspaper
Monday, Mar 01, 2004

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Other States - Uttar Pradesh

Contract farming policy

LUCKNOW, FEB 29. After Punjab and Karnataka, Uttar Pradesh is all set to introduce contract farming policy for farmers in the state to help them sell their produce directly to multi-national companies (MNCs) looking for quality raw material, a top government official has said.

Under the policy, to be released within two months, the food processor would be allowed to directly approach the farmer for his requirements.

``The farmer in turn would keep a pass book maintained by the processor...the government will not interfere unless required,'' Horticulture Secretary Anil Swaroop said.

Talking on the sidelines of a pre-launch press briefing of `India Expo - 2004' here, Mr Swaroop told UNI that the state would appoint arbitrators, who would interfere only if required.

``A trust has to be developed between the farmer and the food processor. While farmers want a surety that their produce would be bought, the processor wants a regular supply from the farm,'' the official added.

In Western Uttar Pradesh, farmers are directly selling Basmati rice to exporters and other traders as per their requirement. ``Haldiram, in fact, procures most of its potato from U.P. these days,'' added Mr Swaroop.

The process of contract farming was initiated by former Agriculture minister, Hukum Singh, in the previous Mayawati government.

The government is ready to amend the Mandi Act to allow farmers take input and advice from the companies and sell them the produce directly. The government, which is impressed by the way farmers in Karnataka have benefited from contract farming, said the scheme would help agriculturists from Eastern and Central UP.

UNI

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