Contract Farming Way Out for Potato Growers
Posted by Unknown in Contract Farming, News about India, Potato, Prices on Tuesday, 29 January 2013
BANKURA:
Plummeting potato prices for three consecutive years have prompted
farmers to switch to contract farming this season. The reason is
obvious. No one wants to get burdened with loans after the farming when
it costs Rs 14,000 a bigha. The trend is picking up in as many as 19
blocks of south Bengal - Hooghly, Burdwan, Birbhum, West Midnapore,
Howrah and Bankura.
"Potato
farming is becoming disastrous with packets of the crop kept in cold
storage offered at 50 paisa or one rupee a kilo without any taker," said
Meghanjan Dutta of Shiromonipur village under Kotulpur block in
Bankura.
For
them, tying up with the PepsiCo India is the only alternative for an
assured return. "It's not that they are offering much. But at least we
are assured of the return six months ago. Also, we don't have to take
the produce to the local mundi or transport them to the cold storage on
our own," Dutta said.
What
is the contract? The farmer gives his land and labour. PepsiCo
officials provide the seed - Atlanta and Chipsona - different from the
traditional Jyoti or Pokhraj variety and the technology support. They
supervise the cultivation and give advice to farmers from time to time.
After the yield they take the produce to their own storage. The farmer
gets Rs 6 for each kilo of potato. Advantage for the hapless farmers is
that they get to know about the procurement price while they start
sowing the seeds. They get crop insurance, seeds and loans from PepsiCo
agents that they need to pay after the yield.
Meghraj Dutta, owner of 6 bigha of land, has had enough of traditional cultivation.
"We
didn't take to contract farming last year though the PepsiCo came to
our village. We thought that the price on offer by the company was too
low compared to the profit we made in the open market four years ago.
But it didn't happen. Prices kept falling despite the rising input costs
such as seeds, fertilisers, insecticides. I can't take it any more. I
thus opted for contract farming though the procurement price is not
high. The second thing is that the company won't take all the produce.
It will grade potatoes and take those that suit its requirement. It
becomes difficult to sell the reject low sugar potato variety. But then
it is better than what we are facing now," Dutta said.
Owner
of two-bigha land Chittaranjan Nandi of Panahar village has also joined
hands with PepsiCo. "With the profit I earned five years ago I married
off my two daughters. Now I can't support my son studying at the
Chandernagore Government College even. I can't take the risk," Nandi
said. Shyamsundar Guin from the Galsi block in Burdwan is also going for
contract farming on 10 bighas of land. "Some farmers in the Kalna block
have also opted for contract farming," Guin said.
Sensing
the mood, the PepsiCo Holdings India has doubled its target this year.
It plans to rope in 9,000 farmers doing the job in 5,000 acres of land.
Assistant manager PepsiCo, Fritolay division Prabal Roy said: "We are
not going for direct purchase from farmers. We are procuring the produce
through vendors. Last year purchased 10,000 tonnes of potato and sent
it our stores. We plan to procure 20,000 tonnes this season. We won't
release this potato in the market. We thank the state government and
officials of allowing us approach the villagers."
Incidentally,
PepsiCo made an entry into potato farming in Hooghly during the
Buddhadeb Bhattacharjee government. During the Left Front tenure, it
could not make foray in Bankura because of political opposition.
Sukdeb
Shyam of Baghrol village in Bankura, however, stood out as one who has
taken to traditional farming even this season. Shyam owns 15 bighas of
land and is in a position to sustain the loss. "I suffered a loss of Rs
7,000. But I am not into contract farming. I hope to make profits from
the traditional variety this season. The price on offer by the PepsiCo
is not encouraging," said Shyam.
Deputy
director Bankura agriculture division Abani Mohan Hazra said PepsiCo
approached the division. "Their (PepsiCo) officials told us that the
company had been carrying out commercial farming on an experimental
basis. This time, they want to go for it in a big way. With farmers in
distress we chose not prevent them. We asked them to get in touch with
the farmers directly and carry out the cultivation if they agree," Hazra
said.
Times of India
