Sunday, August 14, 2022

Top 10 Contract Farming Companies in India

What is Contract Farming? Contract farming is a straightforward concept with far-reaching implications for farmers. 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 product in advance. Farmers then cultivate their fields accordingly.

India is a land of farmers and farming is the largest livelihood provider in India. Farmers work hard to ensure that we have an abundant supply of food to sustain and live our lives. However, they are not fairly paid and often suffer in debt and poor living conditions. However, the concept of contract farming is like a ray of happiness for these farmers.

We will now examine the most prominent contract farming companies in India. Let’s begin with the basics: why contract farming is important and the obstacles it faces.

Why does it matter?

Contract farming also known as corporate farming in India is gaining traction for some plausible reasons.

  • The contract farming company provides farmers with easy access to seeds, equipment, and methods. The farmer benefits from improved quality and yield while reducing production costs and hassles.
  • Since the middlemen are out of the equation, the farmer gets a better deal for their produce. That translates into higher profitability.
  • With financial and technical assistance available, small farmers can stay competitive and contribute to global food security. Plus, they can skip loans with hefty interest rates and stringent conditions.
  • The arrangement significantly reduces the financial risk for farmers. In the event that the yield is destroyed by pests, excessive rains, or natural calamities, the company bears losses.
  • Also, it provides access to markets that were otherwise inaccessible to small farmers.

Which States in India are famous for Commercial farming

Some of the most popular states that are leading the concept of commercial farming are :

  • Uttar Pradesh
  • Gujrat
  • Punjab
  • Assam
  • Andhra Pradesh

Challenges in Contract Farming

On the negative side, the arrangement favors the contract farming company. The company makes the decisions, and small farmers must usually comply. Furthermore, the buyer is a single entity, whereas the suppliers are numerous. Monopsony is the result, which isn’t optimal for the seller or farmer. Furthermore, because the agreements are sometimes informal, the danger of contract breach is considerable.

Top Contract Farming Companies in India

Despite all the loopholes, contract farming can be a lucrative proposition, provided you choose your contract farming company wisely. Here’s a list of the contract farming companies in India. The point is to help you arrive at informed decisions without much due diligence.

1. Big India Farms

Big India FarmsBig 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 7 Avenues, a group of companies with diversified operations, including finance, retail, supply chain, and more. As of now, BIF has over 1500 acres under cultivation. The acreage is expected to reach 10,000 acres in the coming 5 years.

BIF has a thriving statewide network of farmers and is headquartered in New Delhi. They rely on the company to help them choose crops, seeds, fertilizers, tools, and equipment, among other things. In addition, the farmer receives total assistance with planting, nutrition, and harvesting. BIF has a reputation for being very transparent with its network of farmers and for honoring contracts.

Mango, neem, gumler, giloy, mulberry, lemons, roses, millets, papaya, mahua, and jackfruit are among the fruits grown by the company. The full product selection is made available to retail establishments locally and regionally with short lead times. BIF, unsurprisingly, is at the top of India’s leading contact farming enterprises, and its dominance will continue for some time.

Company Details:

  • 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: info@bigindiafarms.com
  • Website: http://bigindiafarms.com

2. Dabur Contract Farming

Dabur Contract FarmingDabur has been a leader in contract farming standards. 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 in order to increase production and protect endangered plant species.

The business has the stats necessary to rank among the top ten contract farming firms in India. It has a sizable 1411-acre holding over 13 states in India. From 2013–2014, the amount of land increased by 41.5 percent. 1674 farmers have contracts with the company as of the most recent tally. This represents an increase of 57% from the prior year. Over 800 farmers have participated in 12 training camps thus far, and 5 lakh seeds have been given away gratis.

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.

Company Details:

  • 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: daburcares@dabur.com
  • Website: https://www.dabur.com

3. Goodricke Group Ltd

Goodricke Group LtdTea and Goodricke are synonymous with each other. The company has entered 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 bigger yield and better-quality produce. To keep farmers modern, Gooricke offers them simple access to loans and technology.

Goodricke, a company based in Kolkata, is one of the top four tea producers in India. The name of the company has been linked to the renowned Darjeeling teas, which are renowned for their delicious flavor and distinctive aroma. Other products, such as loose-leaf tea, green tea, tea bags, and more, are as amazing. The loose-leaf assortment includes highly sought-after blends including Orange Pekoe, Borbam Delight, and Dejoo Silver.

Company Details:

  • 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: goodricke@goodricke.com
  • Website: http://www.goodricke.com

4. Tata Coffee Ltd

Tata Coffee LtdTata Coffee’s name says it all. It’s an offshoot of Tata Group and is dedicated to producing coffee varieties like Green Coffee Bean and Instant Coffee. The company also produces 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. Tata Coffee aims to provide impetus to contract farming in 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 is grown. The tea estates are in Anamallia and its environs, producing CTC teas.

Jamsedji Tata’s foundation, Tata Group, is a global conglomerate with 100 companies operating in virtually all sectors and geographies. Surging ahead with the motto of “Leadership with Trust,” the conglomerate has acquired some of the top global brands lately. With over 750000 employees, it’s one of the leading employers globally.

Company Details:

  • 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: anantha.murthy@tatacoffee.com
  • Website: https://tatacoffee.com

5. Rallis India Ltd

Rallis India LtdIn 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 agreement.

Company Details:

  • 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: investor_relations@rallis.com
  • Website: https://www.rallis.co.in

6. Pacific Herbs Agro Farms Pvt Ltd.

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.

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. Grass Oil, Stevia, Coleus Forskohlii, Mucuna Pruriens, Guar gum, Jatropha, Tulsi, and Aloe Vera are some of the plants cultivated here.

Company Details:

  • 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: agrigum@gmail.com
  • Website: https://www.aromediherbs.com

7. Patanjali Contract Farming

Patanjali Contract FarmingIn order to provide much-needed financial security and growth opportunities for farmers, Patanjali Contract Farming ventured into the contract farming sector. A variety of techniques and technologies are being used by the company to improve the quality and quantity of its yield. Patanjali Contract Farming guarantees farmers the highest price for the products they sell to it, as do many of the top 10 contract farming companies in India. In addition, 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. Transparency is strictly adhered to in all dealings with the farmers. In addition, contracted farmers can expect some serious increases 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 to yoga centers, and college and university campuses, Patanjali also operates an extensive publication department.

Company Details:

  • 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: feedback@patanjaliayurved.org
  • Website: https://patanjaliayurved.org/contract-herbal-farming.html

8. Anand Agro Group

Anand Agro GroupAnand 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 contract farmers. And, with expansion plans in the pipeline, the numbers will 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 can handle up to 1.5 million chicks in a hygienic environment. 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.

Company Details:

  • 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: helpdesk@anandagro.com
  • Fax : 91 253 2575404
  • Website: http://www.anandagro.com

9. Baramati Agro Ltd

Baramati Agro LtdBaramati Agro Ltd, a vision of Rajendra Pawar, has been at the forefront of the poultry business in India since 1988. Lately, it has diversified its operations and emerged as a full-fledged agri-business company with a strong presence in contract farming. The company offers end-to-end contract farming solutions tailored to each client’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 feet forward to develop quality products while limiting costs. The overarching goal is to meet the food requirements globally with a sense of urgency and commitment.

As a conglomerate, 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 Delicious, Freshious, Baramati Agro Feed, Baramati Agro Sugar, Fresh Chicken, Chicken Vicken, and Food 365. The company continues to be the preferred supplier for some of the world’s top retail chains globally.

Company Details:

  • 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: rrp@baramatiagro.com
  • Website: https://www.baramatiagro.com

10. Himalaya Herbal Healthcare

Himalaya Herbal HealthcareA 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 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.

Company Details:

  • 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: info@guatemalahimalaya.com
  • Website: http://himalaya.com.gt

Conclusion

The list of contract farming companies in India described above is our top picks. Whether you are a farmer or a supplier, or someone who is interested in contract farming, we have covered everything you need to know about its working in this article.

To further support and boost farming in India, the national Agriculture policy 2000 aims to improve rural infrastructure to support faster agricultural development, encourage value addition, speed up the growth of agro-businesses, create rural employment, ensure a fair standard of living for farmers, and agricultural workers and their families, deter migration to urban areas, and confront the challenges of economic liberalization and globalization.

We hope you have found this article informative and useful. Keep checking our website – Dunia Ka Gyan, your one-stop resource for informative content, for more content like this. We look forward to your feedback. Please leave your comments in the feedback section.

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