Strategies for Linking FPOs to Contract Farming Companies
Avisweta Nandy
1
and Dwity Sundar Rout
2,*
1
College of Agriculture, Odisha University of Agriculture and Technology, Bhubaneswar, India
2
Centurion University of Technology and Management, Odisha, India
Keywords: Agriculture, FPOs, Market, Contract Farming, Linking.
Abstract: Small-scale farmers are suffering from market uncertainty because the majority of institutional and policy
supports benefit large, progressive farms, while smaller farmers are left out, widening the gap between
producers and consumers. Farmer Producer Organizations have a significant role in fostering and supporting
the member-based institutions of farmers in such circumstances. Using this business form, an organisation
can be articulated with at least ten producers in accordance with its memorandum of association. If there is
no political intervention, FPOs can efficiently connect smallholder farmers to local, regional, national, and
international markets as well as companies. Members of FPOs that are shaped as Farmer Producer Companies
(FPCs) have access to financial, executive, and other input services. With a great potential to control future
food retails not just in India but throughout the world, FPOs must be competitive with other businesses and
competitors in the market to overcome these effective and sustainable profit-making FPOs.
1 INTRODUCTION
“Smallholder farmers who band together to join
producer organisations (POs) in order to increase
farm income through better production, marketing,
and local processing activities.” Illustrated by Rondot
and Collion (2001). By offering agricultural inputs,
finance, processing, and marketing services, Producer
Organizations (POs) are improving successfully the
financial standing of their members (Narayanan and
Gulati, 2002). By grouping farmers into specific and
identifiable producer groups, the agricultural system
is more effective and efficient at providing pertinent
information and training on specific commodities or
products to farmer groups that are growing or
producing those crops or items (Swanson, 2008).
Additionally, POs are becoming more widely
acknowledged as a crucial player in the Agricultural
Innovation Platform on a global scale (Heemskerk
and Wennink, 2005; Shapland and Kampen, 2006;
FAO, 2010). The government has also determined
that farmer producer organisations are the ideal
institutional structure for mobilising farmers and
strengthening their capacity to pool their production
as well as marketing strengths (GoI, 2013).
*
Corresponding author
Many POs struggles to maintain their operations
after the starting few years of their existence, but a
few POs are succeeding (Barman, 2019). In order to
accomplish and achieve their goals, POs take part in
a variety of activities and organise themselves in
various ways, including "legal entities, partners,
associations, cooperatives, societies, self-help
groups, multi-layer organisations (like local
cooperatives and regional or national unions),
companies based on shareholders, and some mixed
unions of these organisations" (Rondot, 2001).
1.1 Formation of FPOs
Farmers' Organizations (FOs) are crucial
organisations for the development of farmers and the
remote people and rural poor, as well as for
empowering them and reducing their levels of
poverty (FAO, 2006). Farmers' organisations should
be encouraged to combine the benefits of
decentralised production and centralised services,
post-harvest management, value addition, and
marketing, according to the National Commission on
Farmers (NCF), which made this recommendation in
2004.
180
Nandy, A. and Rout, D. S.
Strategies for Linking FPOs to Contract Farming Companies.
DOI: 10.5220/0012886300004519
Paper published under CC license (CC BY-NC-ND 4.0)
In Proceedings of the 1st International Conference on Emerging Innovations for Sustainable Agriculture (ICEISA 2024), pages 180-188
ISBN: 978-989-758-714-6
Proceedings Copyright © 2025 by SCITEPRESS – Science and Technology Publications, Lda.

Farmers Organizations can take one of the many
possible forms, like
• Farmer Interest Groups
a group of farmers that seeks to influence
public policy on the basis of a particular
common interest or concern
• Commodity Interest Groups -Commodity
Interest Group is a self managed,
independent group of farmers with a shared
goal and interest
• Cooperatives- a business or organization
that is owned and run by all of the people
who work for it
• Self-Help Groups- informal associations of
people who come together to find ways to
improve their living conditions
• Farmers’ Associations- acts as a channel to
make government plans and policies known
to all the farmers
• Producer Organizations- a legal entity
formed by primary producers, viz. farmers,
milk producers, fishermen, weavers, rural
artisans, craftsmen
• Federations and Unions- a group of states,
etc. that have joined together to form a single
group activities needed to ensure that the
farmer is able to produce the market-desired
products at the right quality, time and price.
The farmers have the option to band together to
support particular initiatives and create a producer
organisation. These particular tasks include
purchasing input, gathering and processing post-
harvest, and selling (marketing) goods. FPO may
assist farmers with the production of a variety of
agricultural products as well as with crop marketing.
Small farmers can participate in the market more
successfully and cooperatively thanks to farmer
associations.
1.2 Contract Farming
An easy idea with significant implications is contract
farming. Here, farmers work under a contract to grow
crops for a corporation or a cooperative business. The
farmer cultivates in accordance with any standards
provided by the corporation regarding the produce's
quality, variety, price, and other factors.
We can argue that agricultural production occurs
in accordance with a contract that is reached between
a farmer and a buyer and that specifies the terms
under which farm products will be produced and sold.
1.2.1 Advantages of Contract Farming
In India, contract farming is becoming more popular
for a number of good reasons.
The contract farming business offers farmers
simple access to seeds, tools, and practises. This
ensures increased quality and productivity while also
lowering production costs and farmer difficulties.
Since there are no middlemen involved, the
farmer receives a greater price for their produce. This
results in increased profitability.
Small-scale farming may contribute to global
food security and maintain its competitiveness with
the help of available financial and technical aid.
Additionally, they can avoid loans with high-interest
rates and severe terms.
Farmers' financial risk is greatly reduced by the
partnership. The corporation is responsible for losses
if pests, extreme rain, or natural disasters destroy the
yield.
Additionally, it gives small farmers access to
markets that would not otherwise be available.
1.2.2 Challenges in Contract Farming
The structure is more favourable to the contract
farming company, which is a drawback. Small
farmers typically have to abide by the company's
rules since it sets them. Additionally, there is only one
buyer and numerous sellers. Monopsony results,
which is not optimal for the farmer. Additionally,
because the agreements are sometimes informal, there
is a greater potential of contract violations.
1.3 Essential Commodities Act, 2020
The Farmers' Produce Trade and Commerce
(Promotion and Facilitation) Ordinance, 2020 permits
intrastate and interstate trade of farmers' produce
outside of the actual APMC market grounds. Outside
of APMC zones, state governments are not permitted
to impose any kind of market fee, cess, or levy.
Through an agreement between a farmer and a buyer
made before any farm products are produced or
raised, the Farmers Agreement Ordinance establishes
a foundation for contract farming. It stipulates a three-
level conflict resolution process that includes an
appellate authority, a sub-divisional magistrate, and a
conciliation board.
Strategies for Linking FPOs to Contract Farming Companies
181

Only under extremely rare circumstances and in
accordance with the Essential Commodities
(Amendment) Ordinance of 2020 may the central
government control the supply of specific food goods
(such as war and famine). Only in the event of a sharp
price increase may agriculture produce stock
limitations be implemented.
1.4 Contract Farming Business Models
Informal model - The promoter and the farmer both
run the risk of defaulting under this arrangement,
which is the most speculative and transient of all
contract farming schemes (van Gent, n.d., p.5). The
interdependence of contract parties or established,
reliable relationships, however, may lessen the
danger of opportunistic behaviour. The CF model's
unique characteristics include:
Small holders and small farms enter into
straightforward, informal seasonal production
contracts.
The effectiveness frequently relies on the
accessibility and calibre of external extension
services.
When embedded services are offered, they are
typically confined to the delivery of basic inputs on
credit and normally only involve grading and quality
control.
Typical products: minimally processed/packaged,
vertically coordinated; for example, fresh produce for
local markets, occasionally also staple crops.
• Intermediary model - In this arrangement,
the buyer subcontracts a middleman
(collector, aggregator, or farmer
organisation) who formally or unofficially
hires farmers (combination of the
centralized/informal methods). Special
features of this CF model include:
o The intermediary buys the crop and
delivers embedded services (often by
passing through services provided by
purchasers against service fees).
o If this model is well-designed, incentive
structures are sufficient, and there are
control mechanisms in place, it can
operate.
o There may be drawbacks to this
paradigm in terms of vertical
coordination and farmer incentives
(buyers may lose control of production
processes, quality assurance and
regularity of supplies; farmers may not
benefit from technology transfer; there is
also a risk of price distortion and reduced
incomes for farmers).
• Multipartite model - This model may have
originated from the centralised or nucleus
estate models, such as after the privatisation
of para-statals. It involves a number of
organisations, including governmental
statutory entities, commercial businesses,
and occasionally financial institutions.
Special attributes:
o Joint ventures between parastatals,
community businesses, and domestic or
foreign investors may be part of this
approach.
o The vertical coordination is at the firm's
choice. The potential for political
influence must get the necessary
consideration.
o In addition, this model might include a
farm-firm structure that is reinforced by
contracts with outside service providers
(e.g. extension, training, credits, inputs,
logistics).
o Farmer organisation and embedded
services (such as credits, extension,
marketing, and occasionally also
processing) may be carried out by
independent organisations (such as
cooperatives).
o This model may involve equity share
schemes for producers.
• Centralized model - In this paradigm, the
customers' engagement might range from
modest input provision (such as the selection
of certain types) to complete control over all
elements of production (e. g. from land
preparation to harvesting). The most typical
CF model, which may be summed up as
follows:
o A vast number of small, medium, or large
farmers are served by the buyer's
sourcing of their products and provision
of services.
o Farmer-contractor relations and
coordination are strictly vertically
organised.
o At the start of the season, the quota,
quality requirements, and delivery
conditions are established.
o The production and harvesting
procedures and standards are strictly
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regulated, occasionally being carried out
directly by the buyer's team.
o Large quantities of uniform quality
products, usually for processing, are
typical. Examples include sugar cane,
tobacco, tea, coffee, cotton, tree crops,
vegetables, dairy, and poultry.
• Nucleus estate model - In this approach, the
buyer sources from contractual farmers as
well as its own estates and plantations. The
buyer must make large investments in land,
equipment, personnel, and management
under the estate system. The following
describes this CF model:
o In order to ensure cost-effective use of
installed processing capacities and to
fulfil solid sales agreements, the nucleus
estate typically assures supplies.
o The nucleus estate may occasionally be
utilised for research, breeding, piloting,
demonstration, and/or collection
purposes.
o To emphasise their connection to the
nucleus farm, the farmers are
occasionally referred to as "satellite
farmers." This strategy was frequently
applied in the past to state-owned farms
that redistributed land to former
employees. Today, the private sector
uses it as one sort of CF as well. This
approach is frequently called the
"outgrower model."
o Common goods: perennials
1.5 Contracts with Input Conditions
(IC)
• Credit-provided seeds
• Expansion for mechanisation and better
farming techniques
• Extending for more stringent post-harvest
procedures
• Irrigation provisions
• Credit-based fertiliser provision
• Credit-based supply of pesticides
• Access to finance for operational needs
1.6 Contracts with Output Conditions
(OC)
• Credit-provided seeds
• Expansion for mechanization and better
farming techniques
• Extending for more stringent post-harvest
procedures
• Irrigation provisions
• Fertilizer supplied on credit
• Pesticides supplied on credit
• Access to finance for operational needs
1.7 Top 10 Contract Farming
Companies in India
• Big India Farms
• Dabur Contract Farming
• Goodricke Group Ltd.
• Tata Coffee Ltd.
• Rallis India Ltd.
• Pacific Herbs Agro Farms Pvt Ltd.
• Patanjali Contract Farming
• Anand Agro Group
• Baramati Agro Ltd.
• Himalaya Herbal Healthcare
Big India Farms
The goal of Big India Farms (BIF) is to improve
farming methods both in India and overseas while
ensuring a steady supply of food. It is owned by 7
Avenues, a conglomerate with diverse business
interests in finance, retail, supply chain, and other
areas. Currently, BIF cultivates more than 1500 acres.
In the next five years, 10,000 acres are anticipated to
be added to the property.
BIF, which has its main office in New Delhi, has
a strong nationwide network of farmers. They look to
the business for advice when choosing crops, seeds,
fertilisers, tools, equipment, and other things.
Additionally, the farmer gets full assistance with
planting, feeding, and harvesting. BIF has a track
record of keeping the contract with network farmers
and preserving complete openness.
Mango, Neem, Guler, Giloy, Mulberry, Lemons,
Roses, Millets, Papaya, Mahua, and Jackfruit are just
a few of the many crops that the company grows.
Local and regional retail stores have quick lead times
to access the whole product portfolio. Unsurprisingly,
BIF is at the top of the list of the best contact farming
businesses in India, and it will likely maintain this
position for some time.
Company Details:
• Since: 01 May 2007
Strategies for Linking FPOs to Contract Farming Companies
183

• Parent Company: 7 Avenues
• Headquarters: New Delhi
• Address: 5574-A, Kashiram Building,
Kohlapur Road, North Delhi, 11000, India
• Contact No.: [phone], +91-
9039651392 (Hindi)
• Email: [e-mail]
• Website: http://bigindiafarms.com
Dabur Contract Farming
Contract farming guidelines have been established by
Dabur Contract Farming. The company focuses on
growing herbs and medicinal plants using
environmentally friendly methods. Dabur educates
farmers and rural communities on the most modern,
resource-saving agricultural techniques to increase
production and protect endangered herb species with
the aid of neighbourhood NGOs.
The business has the stats to rank among India's
top 10 contract farming firms. It has a sizable 1411
acre holding over 13 states in India. Since 2013–
2014, the amount of land has increased by 41.5
percent. 1674 farmers were under contract with the
business at the last tally. This represents an increase
of 57% from the previous year. Over 800 farmers
have attended 12 training programmes so far, and 5
lakh seeds have been given away without charge.
Dabur India Limited, as the name suggests, owns
and runs Dabur Contract Farming. Dabur, which was
founded in Kolkata in 1884, is currently the largest
Ayurvedic and Natural Health Care firm in the world,
with annual sales of INR 9500 Crores. Dabur
provides a wide range of products, including those for
hair care, dental care, ginger-garlic paste, honey,
coconut milk, and mosquito repellent.
Company Details:
• Since: 1884
• Parent Company: Dabur India Limited
• Headquarters: New Delhi
• Address: 8/3, Asaf Ali Road, New Delhi-
110002, India
• Contact No.: 1800-103-1644 (Tollfree)
• Email: [e-mail]
• Website: https://www.dabur.com
Goodricke Group Ltd.
Tea and Goodricke go together. The company has
entered the contract farming market recently, working
with farmers to grow tea. The organisation makes
sure that the cultivation is carried out using cutting-
edge, environmentally friendly techniques to increase
productivity and improve the quality of the produce.
To keep farmers modern, Gooricke offers them
simple access to loans and technology.
Goodricke, a company based in Kolkata, is one of
the top four tea producers in India. The name of the
company has been linked to the renowned Darjeeling
teas, which are renowned for their delicious flavour
and distinctive aroma. Other products, such as loose
leaf tea, green tea, tea bags, and more, are as amazing.
The loose-leaf assortment includes coveted mixes
like Orange Pekoe, Borbam Delight, and Dejoo
Silver.
The largest producer of tea in the world, Camellia
PLC UK, owns Goodricke as a subsidiary. It began in
1977 after the company bought eight Sterling
Companies. In West Bengal and Assam, the company
currently operates 27 production facilities and more
than 30 gardens.
Company Details:
• Since: 1977
• Parent Company: Camellia PLC UK
• Headquarters: Kolkata
• Address: Camellia House, 14, Gurusaday
Road, Kolkata – 700 019 West Bengal, India
• Contact No.: [phone], 22878737,
22871816
• Fax: [phone]
• Email: [e-mail]
• Website: http://www.goodricke.com
Also Check:
• Top Verticle Farming Companies in India
• Top Biotechnology Companies in India
• Top Cyber Securities Companies in India
• Rarest Plants in the world
• Top Pen Brands
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Tata Coffee Ltd.
The name of Tata Coffee explains it all. It is a division
of the Tata Group and is devoted to producing several
types of coffee, including instant and green coffee
beans. Additionally, the business crops tea and
pepper. The goods' delectable flavour, scent, and
general excellence have won them acclaim
throughout the world. Even major international
brands like Starbucks source their mixes from Tata
Coffee. The mission of Tata Coffee is to advance
contract farming in India.
One of the top integrated coffee cultivation and
processing brands in the world, the company has a
well-known focus on sustainability and traceability.
Tata Coffee had around 19 plantations totaling about
8000 hectares at the most recent count. Southern India
has the majority of the world's coffee plantations,
where kinds like freeze-dried, agglomerated, and
spray-dried coffee are farmed. The tea estates, which
produce CTC teas, located in Anamallia and its
surrounding areas.
Jamsedji Tata founded the Tata Group, a
multinational corporation with 100 companies that
operate in almost all industries and regions. The
company has recently purchased some of the most
prestigious global brands while advancing under the
motto "Leadership with Trust." It is one of the largest
employers in the world with 750000 employees.
Company Details:
• Since: 1922
• Parent Company: Tata Group
• Headquarters: Bangalore
• Address: No.57, Railway Parallel Road,
Kumara Park West, Bangalore 560020,
Karnataka, India
• Contact No.: [phone] – 97,
23561976 – 81
• Email: [e-mail]
• Website: https://tatacoffee.com
Rallis India Ltd.
In an effort to significantly expand its presence in the
contract farming market, Tata Group purchased Rallis
India in 2004. Crop protection, seeds, plant growth
nutrients, and agri-services are all offered by Rallis,
which is now a division of Tata Chemicals. The
business is well-established throughout India, with a
focus on agricultural states like Maharashtra, Uttar
Pradesh, Madhya Pradesh, Punjab, and Haryana.
Rallis has developed into one of the top 10
contract farming businesses in India over the years
because to a proactive attitude and intimate
knowledge of Indian agriculture. The business uses a
carefully thought-out Quad-Partite contract farming
concept. Here, among other benefits, the farmer
obtains agricultural inputs, money, equipment, and
buy-back assurance.
The origins of Rallis may be traced back to the
19th century, when two Greek businessmen
established a little store in London. Currently, the
corporation uses 2300 distributors to serve the
majority of India. The Rallis Kisan Kutumb
programme enables the business to communicate
with millions of farmers and meet their needs for
contract farming and agri-services.
Company Details:
• Since: 1815
• Parent Company: Tata Group (Tata
Chemicals)
• Headquarters: Mumbai
• Address: 23rd Floor, Lodha Excellus, New
Cuffe Parade, Off Eastern Freeway, Wadala,
Mumbai 400037
• Contact No.: 022 – 6232 7400
• Email: [e-mail]
• Website: https://www.rallis.co.in
Pacific Herbs Agro Farms Pvt Ltd.
Pacific Herbs Agro Farms Pvt. Ltd. has established
standards for the production of aromatic and
medicinal plants. The business, which is based in
Nagpur, has been providing dried flowers, herbal
extracts, and Indian herbs since 2003. Additionally,
the business is one of India's top suppliers of services
for contract farming.
The business provides professional Roshagrass
and Lemongrass cultivation services. The farmer
receives site evaluations, feasibility analyses, seeds,
tools, and technical inputs here. Additionally,
complete assistance is provided with building up a
distillation machine and marketing the finished
product. At least 10 acres (irrigated or rain-fed) of
land and up to 6 lakhs in initial investment are needed
by the farmer.
Strategies for Linking FPOs to Contract Farming Companies
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With projects in seven states—Gujarat,
Uttarakhand, Chhattisgarh, Karnataka, Tamil Nadu,
Telangana, and Maharashtra—Pacific Herbs has a
strong national presence. 16 projects, or the bulk, are
located in Maharashtra. Grass Oil, Stevia, Coleus
Forskohlii, Mucuna Pruriens, Guar gum, Jatropha,
Tulsi, Aloe Vera, and other plants are grown.
Company Details:
• Since: 2003
• Parent Company: N/A
• Headquarters: Nagpur
• Address: Kamlinee Cottage, 9, Sant Saikripa
Society, Narendra Nagar, Nagpur,
Maharashtra, India
• Contact No.: [phone] / +91-97301
07163 / [phone]
• Email: [e-mail]
• Website: https://www.aromediherbs.com
Patanjali Contract Farming
By entering the contract farming market, Patanjali
Contract Farming hopes to give farmers the stability
and prospects for expansion that they so much need.
In order to improve the yield's quality and quantity,
the organisation keeps trying new approaches and
technology. Patanjali Contract Farming guarantees
premium pricing for the goods it purchases from
farmers, just like many of India's top 10 contract
farming businesses. Moreover, the payments are
made in advance.
To keep farmers prosperous, the organisation
makes sure that agricultural information, tools, and
technical assistance are easily accessible. The
primary goal is to grow ayurvedic herbs for use in all
Patanjali product categories. Patanjali guarantees that
the contract's terms and conditions are upheld
throughout. Upholding the highest standards of
transparency in all interactions with the farmers
requires extreme scrupulosity. Additionally,
contractual farmers can anticipate significant annual
raises.
One of the most famous brands in India is that of
the parent company, Patanjali Ayurved Limited. It
began with natural food goods and eventually
expanded its product line to include Ayurvedic
medicines, personal care items, herbal home care
items, fashion, and more. Through an expanding
network of authorised dealers all over India, sales are
conducted. Additionally, Patanjali runs a publication
division in addition to numerous yoga studios,
schools, colleges, and universities.
Company Details:
• Since: 2006
• Parent Company: Patanjali Ayurved
Limited
• Headquarters: Haridwar
• Address: Patanjali Food and Herbal park,
Vill – Padartha, Laksar Road, Haridwar
249404, Uttrakhand – 247663
• Contact No.: 1800 180 4108
• Email: [e-mail]
• Website: https://patanjaliayurved.org/contra
ct-herbal-farming.html
Anand Agro Group
Through contract farming, Anand Agro Group has
been offering independent work options in India. The
company's contract broiler farming model, which is
accessible in Maharashtra, MP, Gujarat, and other
states as well, is growth-oriented, effective, and open.
The company currently employs 250 people, operates
5 processing facilities, has 14 lakh broiler farms, and
1050 contract farmers. Additionally, with
development plans in the works, the numbers will
likely increase soon.
To maintain high standards, Anand Agro has
established clear procedures and processes in addition
to a solid infrastructure. The business operates a
cutting-edge hatchery with a sanitary capacity of
handling 1500000 chicks. Additional facilities
include an integrated 12 TPH crumble/pallet feed
plant, an 8 TPH mash plant, and a 0.5 TPH premix
facility. Anand Agro generated over 200 crores in
revenue in the prior fiscal year, which attests to the
recent expansion of the business.
Company Details:
• Since: 1997
• Parent Company: N/A
• Headquarters: Nashik
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• Address: 101, Rushiraj house, behind Kotak
Mahindra branch, Kulkarni Baug, Lane No.2,
College Road, Nashik – 422 005
• Contact No.: [phone] | 2575186 |
[phone]
• Email: [e-mail]
• Fax : [phone]
• Website: http://www.anandagro.com
Baramati Agro Ltd.
Since 1988, Rajendra Pawar's vision of Baramati
Agro Ltd. has led the poultry industry. It has recently
expanded its business and become a full-fledged agri-
business enterprise with a significant position in
contract farming. The business provides complete
contract farming solutions that are adapted to the
specific needs of each client's business. To maintain
openness and consumer satisfaction, the contracts are
upheld and carried out.
Along with raising chicken, Baramati Agro also
raises a range of fruits, vegetables, sugar, and dairy
products. Experienced food analysts and RandD
professionals drive the business and put up their best
efforts to create high-quality products while keeping
costs to a minimum. The main objective is to meet the
world's food needs with a sense of urgency and
devotion.
As a conglomerate, Baramati Agro has recently
expanded into industries like retail, distillation,
QSRs, animal feed, and more. Delicious, Freshious,
Baramati Agro Feed, Baramati Agro Sugar, Fresh
Chicken, Chicken Vicken, and Food 365 are a few of
the company's well-known brands. The business
remains some of the leading retail chains in the
world's chosen suppliers.
Company Details:
• Since: 1988
• Parent Company: N/A
• Headquarters: Pune
• Address: 4th Floor, Farina Corporate Park,
Kharadi Bypass Rd., Hadapsar, Pune-
411028, India
• Contact No.: 020-67482800 / 020-67482980
• Email: [e-mail]
• Website: https://www.baramatiagro.com
Himalaya Herbal Healthcare
Himalaya, a family-owned foundation established in
the 1930s, is a well-known brand of premium herbal
medicinal products. The business creates a variety of
efficient goods by fusing traditional herbal medicine
knowledge with cutting-edge medical procedures.
Four different categories make up their product line,
including:
1. General Health
2. Men’s Health
3. Women’s Health
4. Children’s Health
Recently, Himalaya has dabbled in contract
farming. To grow and obtain therapeutic plants, the
company depends on rural areas. Gram Mooligai
Corporation Ltd. (GMCL) primarily purchases from
small and marginal growers in South India. To
support rural areas' continued profitability, the
corporation makes upfront payments that are greater
than market rates.
Company Details:
• Since: 1930
• Parent Company: N/A
• Headquarters: Chandigarh
• Address: Booths, 433-C, Dakshin Marg,
35C, Chandigarh, 160036
• Contact No.: [phone], +502-2387-
0881
• Email: [e-mail]
• Website: http://himalaya.com.gt
1.8 Stategies for Linking
1. Producer organisations and contract farming
are complementary techniques, not rival
ones, and they should be used together.
2. Promote contract farming in the state, and
have a single point for registering contract
farming sponsors.
3. Reduce barriers in terms of requirement of
high deposit amounts
Strategies for Linking FPOs to Contract Farming Companies
187

2 CONCLUSION
Small and marginal farmers are in major numbers in
India. Their problems are tough to solve with only
making them groups through FPOs rather they should
be provided the optimum price for their effort to make
the country as well as the world hunger free. So,
contract farming is a boon for them to get a good price
and regularly keeping eye on the climate. These FPOs
and contract farming companies can be linked
through the prior discussion with the farmers
regarding the required crops or products needed for
the companies as raw material. Again, the companies
can recruit members of the farmers’ families as
employees in different positions. These provisions
can make the FPOs and contract farming companies’
linkage successful as well as boost the farmers’
income.
REFERENCES
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capacity building and poverty reduction.
Narayanan, S., and Gulati, A. (2002). Globalization
and the smallholders: A review of issues,
approaches, and implications.
Swanson, B. E. (2008). Global review of good
agricultural extension and advisory service
practices (Vol. 82). Rome: Food and Agriculture
Organization of the United Nations.
Heemskerk, W., and Wennink, B. (2005).
Stakeholder-driven funding mechanisms for
agricultural innovation: cases from Sub-Saharan
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Barman, U. (2019). Producer Organisations and
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