26 May Contract farming system for economic security of Farmers
किसानों की आर्थिक सुरक्षा के लिए अनुबंध कृषि प्रणाली The importance of agriculture in a country’s economy lies in that it provides ecological and livelihood security and ensures its national sovereignty. In India, agriculture is facing a complex situation in the present era of globalization and liberalization, more than ever before. Agriculture sector’s contribution to National GDP has declined over the years. The growth rate of GDP of agriculture and allied sector declined from 9.6 per cent in 1996-97 to 6.2 per cent in 1998-99 and further to 6.0 per cent in 2005-06 (Economic survey, 2006-07). Enhancing agricultural growth to targeted 4 per cent seems to be a difficult task. Agriculture in India is not just an industry but is a way of life. The social aspect, especially employment provided by the sector, cannot be ignored. It also provides agricultural inputs to the agriculture based food industries. Timely and adequate quantity of good quality agricultural inputs is a sine qua non for smooth functioning of the agro industries. This underlying paradox of the Indian agricultural scenario has given birth to the concept of contract farming, which promises to (i) provide a proper linkage between the farm and market (ii) promote high degree of competition at the supply and market end, and (iii) minimize intermediaries in...