ACIL Cotton Industries today said it has entered into contract farming with farmers of Sunderhagar, Gujarat, for cultivating organic crops over 173 acres of land.
"As per the agreement, company will provide all facilities like irrigation system, technical assistance, quality seeds, organic fertiliser and labour (if required) to farmers for better yields," ACIL Cotton Industries (ACI) said in a filing to the Bombay Stock Exchange.
The company has already started farming in 149 acres land in the same location and with the addition of 173 acres of land, the total area under the company for organic cultivation has now gone up to 322 acres.
"This is the first step by the company to cultivate organic harvests as a model called integrated organic cultivation, which would guarantee farmers a market-supportive mechanism for selling their produce," the filing said.
Besides, the company is in advance stage of negotiation for bringing another 100 acres of land in Bhavnagar, Gujarat, under the contract farming, it added.
ACIL also said it has chalked out a plan to set up unique business model in corporate organic farming business and is going to establish a complete chain from farming to retailing the product.
"The company will establish its own retail chain stores for selling its own product and even create own brand in very near future... It will help company to gain and post good profit in coming quarterly results," the filing said.