Your search for the top contract farming companies in India ends here. Join us, as we walk you through the top 10 companies that are spearheading the Indian contract farming revolution.
What is Contract Farming?
Well, it’s a straightforward concept with a big impact. Contract farming involves farming under the terms of a contract with a company or cooperative. The corporation may specify the quality, variety, price, and other details of the crop in advance while also providing agri-input. And, the farmer has to cultivate accordingly. As the arrangement involves a contract, they call it contract farming.
Let’s put it this way. Suppose, you, as a farmer, enter into a contract with a company. Now, the company provides you with all the agri-inputs, technologies, and know-how involved in cultivation. So, your job is cut out – cultivate on behalf of the contractor. The contractor, on the other hand, is under obligation to buy a pre-agreed quantity of the produce, usually at pre-agreed rates.
Simply put, the farmer provides labor and land while the contractor provides everything else you require for cultivation. Practically, the contractor owns the produce, not the cultivator. When it comes to the contract, the terms and conditions vary, depending on the type of crop, required agri-inputs (fertilizers, seeds, and more), technologies, know-how, agricultural practices, and other factors. Companies involved can be more than one, each with a different specialty.
How Contract Farming Companies in India Work?
Contract Farming typically happens in the following sequential steps:
- A farmer and agribusiness company agree to a contract farming agreement.
- Both parties then sit to discuss and finalize the terms of the agreement.
- The farmer starts to produce crops as per the terms and conditions of the contract.
- The agribusiness company provides seeds, fertilizers, and pesticides to the farmer.
- The farmer can also get technical assistance & training from the agribusiness company.
- The agribusiness company buys the harvested crops from the farmer at pre-agreed rates.
- The farmer receives the payment as per the agreement, mostly through banking channels.
If things go well, the farmer and the contract farming company can work together on future crops.
Has that piqued your interest? Let’s discuss the top contract farming companies in India. But before that, we shall touch on the basics: why contract farming matters and the challenges it faces.
Benefits of Contract Farming: Why Contract Farming Companies in India Matter?
Contract farming, also known as corporate farming in India, is gaining popularity for some good reasons. The arrangement works well for both farmers and agribusiness companies. Here’s how.
1. Better Income
Farmers usually struggle to find a market and good price for their produce. In contract farming, the agribusiness buys the produce at good prices directly from the farmer. With the market and price ensured, the farmer can expect a stable income. Also, as the middlemen are not involved, farmers get a better deal for their produce. In short, it guarantees higher profitability for the farmer.
2. Technology & Inputs
A majority of farmers in India can’t afford modern technology, high-quality seeds, fertilizers, and other inputs. So, they go for loans with hefty interest rates, which kills their profitability in the long term. Contract farming not only provides technology and inputs but also trains farmers in the latest farming techniques. That leads to a higher yield, lower production costs, and no loaning hassles.
3. Reduced Risk
In contract farming, the farmer gets a guaranteed buyer for their produce that too at a pre-agreed price. Since farmers do not have to worry about market fluctuations, their risk is covered. Also, if the yield is destroyed by pests, excessive rains, or natural calamities, the company bears losses.
4. Quality Control
With the technology, inputs, and training offered by the contract farming companies, the farmer can improve both production and the quality of the produce. Also, farmers have to meet the stringent specifications of the company, which keeps them motivated to maintain quality control.
Companies track the origin of a product to improve quality and safety standards. This is traceability for you. Here too, contract farming can help. As the production and quality standards are specified beforehand, you can conveniently track the origin of the produce across the entire supply chain.
6. Strengthened Supply Chains
Companies count on contract farming to strengthen supply chains and minimize stockouts. That’s because the company gets an assured source of supply in the form of the contracted farmer. This helps them to plan and manage their inventory and production schedules while reducing wastage.
Challenges For Contract Farming Companies in India:
On the downside, the arrangement favors the contract farming company. The company makes the decisions, and small farmers just comply. Furthermore, the buyer is a single entity, whereas the suppliers are numerous. That results in a monopsony, which isn’t good for the farmer. Because the agreements are sometimes informal, the danger of contract breach also runs high.
Top Contract Farming Companies in India
Despite the loopholes, contract farming can be a lucrative proposition, provided you choose your contract farming company wisely. Here’s a well-curated and all-inclusive list of the top contract farming companies in India to help you arrive at informed decisions without much due diligence.
1. Big India Farms
Big India Farms (BIF) is a mission dedicated to maintaining a constant food supply and improving farming practices in India and abroad. It’s owned by the “7 Avenues,” a business group that also deals in finance, retail, supply chain, and more. As of now, BIF has over 1500 acres under cultivation and the acreage is expected to reach 10,000 acres in the coming five years.
Headquartered in New Delhi, BIF has a thriving statewide network of farmers. Farmers rely on the company to help choose crops, seeds, fertilizers, tools, and equipment, among other things. In addition, the farmer receives total assistance with planting, nutrition, and harvesting. BIF is also thoroughly transparent in all its actions and is known to honor contracts and commitments.
Mango, neem, gumler, giloy, mulberry, lemons, roses, millets, papaya, mahua, and jackfruit are among the fruits grown by the company. It has the capability to supply the entire product range to retail stores locally and regionally in quick lead times. BIF, unsurprisingly, is at the top of India’s leading contact farming enterprises, and its dominance will continue for some time.
- Since: 01 May 2007
- Parent Company: 7 Avenues
- Headquarters: New Delhi
- Address: 5574-A, Kashiram Building, Kohlapur Road, North Delhi, 11000, India
- Contact No.: +919755945589, +91-9039651392 (Hindi)
- Email: email@example.com
- Website: http://bigindiafarms.com
2. Dabur Contract Farming
Dabur has been a leader in the contract farming niche segment. The company focuses on growing herbs and medicinal plants using environmentally friendly methods. Dabur educates farmers and rural communities in modern, resource-saving agricultural techniques with the aid of neighborhood NGOs to increase production and protect endangered plant species.
The business has the numbers to rank among the top ten contract farming firms in India. It has a sizable 1411-acre holding across 13 states in India. From 2013–2014, the acreage under cultivation increased by 41.5 percent. On the last count, 1674 farmers had contracts with the company, which represents an increase of 57% from the prior year. Over 800 farmers have participated in 12 training camps organized by Dabur thus far, and 5 lakh seeds have been given away for free.
As the name indicates, Dabur Contract Farming is owned and operated by Dabur India Limited. Established in 1884 in Kolkata, Dabur is presently the world’s leading Ayurvedic and Natural Health Care company with an annual turnover of INR 9500 Crores. From hair care, dental care, and ginger-garlic paste to honey, coconut milk to mosquito repellant, Dabur offers it all and more.
- Since: 1884
- Parent Company: Dabur India Limited
- Headquarters: New Delhi
- Address: 8/3, Asaf Ali Road, New Delhi-110002, India
- Contact No.: 1800-103-1644 (Tollfree)
- Email: firstname.lastname@example.org
- Website: https://www.dabur.com
3. Goodricke Group Ltd
Goodricke is synonymous with tea. The company has forayed into the contract farming market recently, working with farmers to grow tea. The business makes sure that the cultivation is carried out using cutting-edge, environmentally friendly techniques for a higher yield and superior quality. To keep farmers gainful, Gooricke offers them easy access to loans and technology.
Goodricke, a company based in Kolkata, is one of the top four tea producers in India. The company has been linked to the renowned Darjeeling teas, known for their delicious flavor and distinctive aroma. Other Goodricke products, such as loose-leaf tea, green tea, tea bags, and more, are equally impressive. The loose-leaf assortment includes Orange Pekoe, Borbam Delight, and Dejoo Silver.
- Since: 1977
- Parent Company: Camellia PLC UK
- Headquarters: Kolkata
- Address: Camellia House, 14, Gurusaday Road, Kolkata – 700 019 West Bengal, India
- Contact No.: +91-33-22873067, 22878737, 22871816
- Fax: +91-33-22872577, 22877089
- Email: email@example.com
- Website: http://www.goodricke.com
4. Tata Coffee Ltd
The name says it all. It’s an offshoot of Tata Group, dedicated to producing coffee varieties like Green Coffee Bean and Beansant Coffee, alongside pepper and tea. Globally, the company’s products are known for their palatable aroma, taste, and overall quality. Even global brands like Starbucks source their blends from Tata Coffee. Of late, Tata Coffee aims to provide impetus to contract farming in India by implementing farmer-centric programs in South India.
The company’s focus on sustainability and traceability has been legendary, making it one of the world’s leading integrated coffee cultivation and processing brands. At last count, Tata Coffee had over 19 estates covering about 8000 hectares. The coffee plantations are concentrated in Southern India, with varieties like freeze-dried, agglomerated, and spray-dried coffee grown.
The Jamsedji Tata’s foundation, Tata Group, is a conglomerate with 100 companies operating in virtually all sectors and geographies. Surging ahead with the motto of “Leadership with Trust,” Tata Group has lately acquired some of the top global brands, including Tetley, Corus, Jaguar, Land Rover, and Weidinger. With over 750000 employees, it’s one of the leading employers globally.
- Since: 1922
- Parent Company: Tata Group
- Headquarters: Bangalore
- Address: No.57, Railway Parallel Road, Kumara Park West, Bangalore 560020, Karnataka, India
- Contact No.: +91 80 23560695 – 97, 23561976 – 81
- Email: firstname.lastname@example.org
- Website: https://tatacoffee.com
5. Rallis India Ltd
In 2004, the Tata Group bought Rallis India in an effort to expand into the contract farming market. Crop protection, seeds, plant growth nutrients, and agri-services are all offered by Rallis, which is now a division of Tata Chemicals. In agricultural states like Maharashtra, Uttar Pradesh, Madhya Pradesh, Punjab, and Haryana, the corporation is well-represented throughout the country.
Rallis has grown to become one of the top 10 contract farming businesses in India as a result of its proactive attitude and intimate knowledge of Indian agriculture. The business utilizes a carefully thought-out quadruple-party contract farming strategy. The farmer benefits from financial support, equipment, buy-back assurance, and agricultural inputs in this arrangement.
- Since: 1815
- Parent Company: Tata Group (Tata Chemicals)
- Headquarters: Mumbai
- Address: 23rd Floor, Lodha Excellus, New Cuffe Parade, Off Eastern Freeway, Wadala, Mumbai 400037
- Contact No.: 022 – 6232 7400
- Email: email@example.com
- Website: https://www.rallis.co.in
6. Pacific Herbs Agro Farms Pvt Ltd.
Pacific Herbs Agro Farms Pvt. Ltd. has set benchmarks in the cultivation and supply of medicinal and aromatic plants. Operating out of Nagpur, the company has been around since 2003, supplying Indian herbs, natural herbs, herbal extracts, and dried flowers. In addition, the company is among the leading providers of services related to contract farming in India.
The company offers specialized cultivation services for lemongrass and roshagrass. Herein, the farmer gets site surveys, feasibility reports, seeds, equipment, and technical inputs. Full support for setting up a distillation unit and marketing the end product is also delivered. To start with, the farmer requires at least 10 acres (irrigated or rain-fed) of land and up to 6 lakhs to invest.
As one of the top contract farming companies in India, Pacific Herbs has a nationwide footing with projects in seven states, namely Gujarat, Uttarakhand, Chhattisgarh, Karnataka, Tamil Nadu, Telangana, and Maharashtra. The majority of projects, 16 of them, are in Maharashtra alone. The company promotes the cultivation of Grass Oil, Stevia, Coleus Forskohlii, Mucuna Pruriens, Guar gum, Jatropha, Tulsi, and Aloe Vera through well-targeted contract farming programs.
- Since: 2003
- Parent Company: N/A
- Headquarters: Nagpur
- Address: Kamlinee Cottage, 9, Sant Saikripa Society, Narendra Nagar, Nagpur, Maharashtra, India
- Contact No.: +91-94228 81280 / +91-97301 07163 / +91-70837 57145
- Email: firstname.lastname@example.org
- Website: https://www.aromediherbs.com
7. Patanjali Contract Farming
Patanjali Contract Farming ventured into the contract farming sector to provide much-needed financial security and growth opportunities to farmers. The company relies on a variety of techniques and technologies to improve the quality and quantity of the farmer’s yield. Patanjali Contract Farming guarantees farmers the highest price for the products than any of the top 10 contract farming companies in India. Best of all, payments are made upfront.
To keep farmers profitable, the company provides convenient access to agriculture-related information, equipment, and technical assistance. The focus is on cultivating ayurvedic herbs for Patanjali products across different categories. Patanjali ensures that the terms and conditions of the contract are adhered to and transparency is strictly maintained in all dealings with the farmers. In addition, contracted farmers can expect some serious increases in remuneration each year.
The parent company, Patanjali Ayurved Limited, is one of the most recognizable brands in India. It started with natural food products and later diversified its product portfolio to include personal care, Ayurvedic medications, herbal homecare products, fashion, and more. The selling is done via a growing India-wide authorized dealer network. In addition, Patanjali also operates an extensive network of yoga centers, colleges, and universities, alongside a publication department.
- Since: 2006
- Parent Company: Patanjali Ayurved Limited
- Headquarters: Haridwar
- Address: Patanjali Food & Herbal park, Vill – Padartha, Laksar Road, Haridwar 249404, Uttrakhand – 247663
- Contact No.: 1800 180 4108
- Email: email@example.com
- Website: https://patanjaliayurved.org/contract-herbal-farming.html
8. Anand Agro Group
Anand Agro Group has been providing self-employment opportunities through contract farming in India. Available in Maharashtra, MP, Gujarat, and beyond, the company’s contract broiler farming model is growth-oriented, efficient, and transparent. Presently, the company has five processing units, 14 lakh broiler farms, a 250-strong workforce, and 1050 contracted farmers. And, with some serious expansion plans in the pipeline, the numbers are likely to go up in the near future.
Anand Agro has developed well-defined systems and processes, alongside a sound infrastructure to uphold quality standards. The company has a modern hatchery that offers a hygienic environment to up to 1.5 million chicks. An integrated 12 TPH crumble/pallet feed plant, an 8 TPH mash plant, and a 0.5 TPH premix plant are also in place. In the previous FY, Anand Agro raked in a turnover of over 200 crores, which speaks volumes about the growth the company has achieved lately.
- Since: 1997
- Parent Company: N/A
- Headquarters: Nashik
- Address: 101, Rushiraj house, behind Kotak Mahindra branch, Kulkarni Baug, Lane No.2, College Road, Nashik – 422 005
- Contact No.: +91 253 2576913 | 2575186 | +91 88888 59077
- Email: firstname.lastname@example.org
- Fax: 91 253 2575404
- Website: http://www.anandagro.com
9. Baramati Agro Ltd
Baramati Agro Ltd, a vision of Rajendra Pawar, has been at the forefront of the poultry business in India since 1988. Lately, the company has diversified its operations to emerge as a full-fledged agribusiness company with a strong presence in contract farming. It offers end-to-end contract farming solutions tailored to each farmer’s unique business requirements. The contracts are honored and executed to maintain transparency and customer satisfaction.
Besides poultry, Baramati Agro also cultivates a variety of sugar, fruits, and vegetables, along with dairy products. The company is powered by seasoned food analysts and R&D experts who put their best foot forward to develop quality products while restricting costs. The company’s overarching goal is to meet the food requirements globally with a sense of urgency and commitment.
Baramati Agro has recently ventured into sectors like power, retail, animal feed, distillation, QSRs, and more. Some of the company’s widely recognizable brands include Baramati Agro Sugar, Food 365, Delicious, Freshious, Baramati Agro Feed, Fresh Chicken, and Chicken Vicken. The company continues to be the preferred supplier for some of the world’s top retail chains globally.
- Since: 1988
- Parent Company: N/A
- Headquarters: Pune
- Address: 4th Floor, Farina Corporate Park, Kharadi Bypass Rd., Hadapsar, Pune- 411028, India
- Contact No.: 020-67482800 / 020-67482980
- Email: email@example.com
- Website: https://www.baramatiagro.com
10. Himalaya Herbal Healthcare
A family-owned foundation since the 1930s, Himalaya is a household name associated with world-class herbal healthcare products. The company combines the conventional knowledge of herbal medicine with modern practices in healthcare to deliver a range of safe, reliable, and effective products. Their product portfolio includes four distinct categories, including:
- General Health
- Men’s Health
- Women’s Health
- Children’s Health
Himalaya has ventured into contract farming of late. The company relies on rural communities to grow and procure medicinal herbs. The procurement happens via Gram Mooligai Corporation Ltd. (GMCL), largely in South India, from small and marginal growers. The company pays upfront and at a higher price than the market prices to help rural communities stay profitable.
- Since: 1930
- Parent Company: N/A
- Headquarters: Chandigarh
- Address: Booths, 433-C, Dakshin Marg, 35C, Chandigarh, 160036
- Contact No.: +502-2387-0880, +502-2387-0881
- Email: firstname.lastname@example.org
- Website: http://himalaya.com.gt
11. Sami-Sabinsa Group Limited
With 414 patents, 120 products, 8 manufacturing units, and 120 scientists, Sami-Sabinsa Group Limited is one of the leading companies in the health sciences field. Formerly Sami Labs Limited, the company is dedicatedly developing, manufacturing, and marketing nutraceuticals, cosmeceuticals & dietary supplements. It has been around since 1991 as a foundation of Muhammed Majeed.
Sami-Sabinsa is also involved in contract farming. Its flagship program, the Sami Sabinsa Group Integrated Farmers Training and Extension Program (SSGIFTEP) is helping farmers to grow a variety of medicinal plants through contract farming. The program provides farmers with the necessary training, technical support, and buyback guarantees to ensure the quality of the crops produced.
- Since: 1991
- Address: 2nd Phase, 19/1, 1st Main Rd, Nalagadderanahalli, Peenya, Bengaluru, Karnataka 560058, India
- Contact Number: 91 8028397973
- Email: email@example.com
- Website: https://sami-sabinsagroup.com/
12. Pran Beverages India Pvt Ltd
Since 2010, Pran Beverages India manufactures and distributes beverages, bakery, and confectionery products. Based in Kolkata, West Bengal, the company procures raw materials through contract farming from local farmers. Pran Beverages offers easy loans, technical assistance, and other inputs to the contracted farmers to help them increase their yield and profits. That makes it one of the leading contract farming companies in India.
- Since: 2010
- Address: New Town Square, 6th Floor, 6B1, Chinar Park, Atghara, Kolkata, West Bengal 700136, India
- Phone: 1800-121-4899
- Email: firstname.lastname@example.org
- Website: https://pbil.in/
That was our pick of the top contract farming companies in India. We have covered everything that any farmer, supplier, investor, or someone simply interested in the latest farming technologies and trends needs to know about contract farming. We hope you will find it informative and useful.
For more content like this, stay tuned to Dunia Ka Gyan, your one-stop resource for all the Gyan. We look forward to your feedback in the comments section. You can use the space for queries as well.
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Frequently Asked Questions
1. What is Contract Farming?
It’s an agricultural practice where the cultivation happens under a contract with both parties, the company, and the cultivator, complying with the pre-agreed terms and conditions. Typically, the company caters to all the requirements for cultivation, other than the land and labor, which the cultivator is responsible for. Usually, the company buys the produce at pre-agreed prices.
2. What are the terms and conditions of the contract?
They vary, subject to a variety of factors, such as the nature of the crop, required agri-inputs, equipment, know-how, agricultural practices, and more. Even the contract duration can vary, from a few months to years. So, it’s wise to seek some legal advice before entering a contract.
3. What are agri-inputs involved in contract farming?
It can be anything that a cultivator requires to grow a crop as per the company’s specifications. Think seeds, fertilizers, plant protection products, feed, lubricants, and agricultural equipment.
4. Which States in India are famous for Commercial farming?
The following states have the maximum number of contract farming companies in India:
- Uttar Pradesh
- Andhra Pradesh