Last Updated : Jan 28 2013 | 2:19 AM IST
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Contract farming seems to be the new buzzword in the farm sector. Since agro-based companies are barred from taking up crop cultivation on their own, contract farming seems to be the best option for them to get their raw materials custom-produced through farmers.
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It is essentially a contractual relationship between the producers of farm products and their users (processors, exporters or traders) for the sale and purchase of agricultural produce outside the regular marketing channels.
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This contract, oral or written, can be either directly between the farmer and the company or through some middle agency like a farmers
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First Published: Sep 09 2003 | 12:00 AM IST