Field Fresh to shift to contract farming

Field Fresh Foods Private Ltd, a joint venture between Bharti Enterprises and Rothschild, is shifting from collaborative farming to contract farming by the middle of July.

This was announced by Rakesh Bharti Mittal, vice-chairman, Bharti Enterprises at the launch of Bharti AXA Life Insurance Company Ltd's operations in Ludhiana.

Mittal also said the company would be foraying into general insurance in the second half of this year and would be called Bharti AXA General Insurance.

"In the first week of July we will announce the launch of our pack house as well as our plans for contract farming in Punjab, in which we will involve farmers directly," Mittal told Business Standard.

Bharti had earlier tied up with Sutlej Agriculture, a Delhi-based company for collaborative farming. Though he did not elaborate the problems faced in collaborative farming, Mittal said, "All I can say for now is that the challenges faced in this form of agriculture were not very convenient."

Field Fresh was started to wean farmers away from the wheat-paddy cycle by getting them to grow vegetables around the year. Till now, the company has tried out more than 20 different crops.

Almost two years ago, 300 acres of undeveloped land at Ladhowal (Ludhiana) was given to Bharti by the then Congress-led Punjab government for its research and development. Today, it is a model of modern farming practices with over 45 acres dedicated to protected cultivation in glass, green, poly and net houses.

According to sources in Field Fresh, under its collaborative farming model, Field Fresh used to take land on lease from farmer at the prevailing contract of that area (approximately Rs 15,000 per acre to Rs 17,000 per acre, depending on the district) and if the farmer was capable, they employed him on his own land for a salary of at least Rs 2,500 a month.

He was given the seeds and guidance. The farmer was also given money for machinery used for cultivation, such as tractors.