CONTRACT FISH FARMING
The production augmenting agro-technologies that heralded the method of the revolution and made India food secure. The advantages of quality seed, timely growing and harvesting with improved Biofloc technology were observed as higher productivity with quality production. CONTRACT FISH Farmers face market volatility at the time of selling their produce. Therefore, the govt started procuring some commonly cultivated agri-commodities at Minimum Support Price (MSP). The cultivation of other crops not supported by MSP becomes risky and unfavorable, consequently improper diversification of agricultural crops led to over-production of certain commodities and under-production of certain agri-commodities. The unremunerative returns forced farmers to seem for alternatives of farming. The CONTRACT FISH FARMING encourages farmers to safeguard themselves from market volatility (abnormally price crash thanks to over production). The is a step towards achieving assured income by providing the farmers improved marketing channels with or without better seeds, other inputs, support and technical know-how. To know more about training and biofloc fish farming whatsapp 8887222713
CONTRACT FISH FARMING isn’t totally new our country. The success of Milk Cooperatives and Sugar Cooperatives explains the depth and reach of contracting farming in India. it’s formal contract between producers (farmers) and buyers (generally processors or exporters). Contract farming are often defined as an agreement between farmers and contracting firms for the assembly and provide of agricultural products under advance agreements, frequently at predetermined prices. the idea being a commitment on the a part of the farmer to supply a selected commodity in quantities and at quality standards determined by the purchaser, and a commitment on the a part of the corporate to support the farmer’s production and to get the commodity. Contract fish farming allows firms to participate in and exert control over the assembly process without owning or operating the farms. The arrangements can vary by crops and by contracting firms. The contracts could also be for
i) market support contracts are pre-harvest agreements essentially between firm and farmers to a specific set of conditions for the sale and buy of the fishes. The contract fish farming specifies price, quality and pricing
ii) resource support contracts are agreement between farmers and firms in conjunction with the marketing arrangements, the firms agrees to provide selected inputs, including on occasions land preparation and technical advice, credit, etc.
iii) production management contracts bind the farmer to follow a specific input management, agronomic practices and harvesting specifications usually in exchange for a marketing agreement or resource provision.
(1) Farmers: generally , the farmers have poor knowledge of package of practices of cultivation of crop and inadequate capital to grow a top quality crop, little bargaining power with input suppliers and produce markets, lack of post-harvest management expertise, inadequate infrastructure and market information. Often the firms provide credit, inputs, farm machinery, and a good range of managerial, technical and extension services with assurance to get produce and always retains the proper to reject substandard produce. Farmers also can use the contract agreement as collateral to rearrange credit with commercial banks and financial institutions so as to fund inputs. The skill transfer is another feature of contract farming. Skills transferred can include the efficient use of farm resources, completing field activities consistent with a strict timetable, improved methods of applying chemicals and fertilizers, and a knowledge of the importance of quality and of the stress of export markets and good record keeping. Contract farming helps small farmers to participate within the production of high value crops like vegetables, flowers, fruits, etc. and enjoy market led growth at minimum market, transport, post harvest handling risks. Contract farming system reduces the yield uncertainty and removes the worth uncertainty. The contract farming requires no large investments of the farmers’ money, indeed, it reduces the value incurred on purchase of inputs as they’re supplied by contracting firms.
(2) Contracting firms: Contract farming is most ordinarily practiced by food processing companies. Contract farming had solved the matter of supply of staple of the specified quality and quantity from reliable source almost the processing plants. Companies gain access to crop production ashore that might rather be unavailable, with the extra advantage of not having to shop for or lease it. Further, it reduces uncertainties that might exist if the corporate simply bought crops on the open market, and provides the corporate some control over the assembly process. Contract farming might not necessarily be profit centres for companies.
(3) Bankers: Contract fish farming is additionally promoted and supported by financial institutions and banks. Effective & efficient monitoring of production operations, extension activities and credit delivery during a conjugal area is straightforward in contract farming. Access to crop loans at attractive terms through tie-ups with Banks is facilitated through contract farming.
(4) Government: There also are various government and semi-government agencies involved directly or indirectly in contract fish farming. the govt understands that the farm sector must be competitive to survive and to contribute to poverty alleviation and economic process of country. the simplest possible solution is to involve private sector through contract farming to permit accelerated technology transfer, capital inflow and guaranteed marketplace for agricultural crops. Private agribusiness will usually offer technology more effectively than government agricultural extension services, because it’s an immediate economic interest in improving farmers’ production. this may also generate the opportunities of employment within the country , processing industries, agri-input industries and financial institutions.
Risks with Contract fish farming: Path of success of contract fish farming isn’t free from risks.
It is not as easy to popularize contract farming among farmers. Uncertainty involved in growing new, unfamiliar fish/crops and producing for markets which may not always come up to their expectations – or their sponsors’ forecasts. Most companies offer contract farming to the large to medium farmers. They neglect small and marginal farmers whose proportion is more in Indian context. Farmers renege contract because the cost of cultivation might be less than in non-contract production (as technology and management practices brought by the processor; access some inputs like insurance and credit at lower cost). If the market value is more advantageous than the contract price, farmers renege the contract. Farmers’ inability to satisfy strict timetables and regulations due to social obligations or religious practices
The firms may manipulate quality standards so as to scale back purchases or dictate exploitative terms with the farmers. The legal enforcement system is just too tedious for both growers and firms and to lawfully enforcing the contracting terms with the farmers gives a negative message of the contracting firm among the farming community. Debt caused by production problems, poor technical advice, significant changes in market conditions, or a company’s failure to honor contracts.
Development of contract farming schemes is that the strategy for taking advantage of globalization through vertical coordination of small farms with processors and exporters. Through the contract farming initiatives we will provides a second push to the revolution in India. Contract farming also improves the micro-economy of village.
The key to the success of this venture lies in build up a healthy trust between grower and buyer.
For Contract Fish Farming feel free to know more at email@example.com or call/whatsapp us on 8887222713