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Biotor has, over the last three years, launched major initiatives to promote castor cultivation under the framework of contract farming in India. Beginning with a modest scale in Maharashtra, the company has gradually spread its contract farming operations in Punjab and Gujarat through its significant and concerted organizational and financial commitments. The primary focus of BIOTOR is to strive towards creation of substantial alternative sources of castor seed supply from Maharashtra, Punjab and other prospective States. At the same time, the company has been deeply concerned with raising productivity and incomes of the farmers through castor cultivation, and offering them an alternative framework of economically viable contract farming. The company believes in creating an institutional mechanism of "partnership for growth and prosperity" with the farmers.
Biotor has already contracted about 100,000 acres in 2008-09, of which as much as 65,000 acres are in Maharashtra. A large number of farmers have entered into contracts with the company, and consequently so many households are looking forward to the success of contract farming operations for improving their means of livelihood and standards of living. Going forward, the objective of the company is to bring at least 500,000 acres involving at least 125,000 farmers by 2011-12 within the purview of castor cultivation under contract farming. This vision of the company would go a long way in the process of rural development of India, thereby leading to the creation additional incomes and employment.
The contract farming model of Biotor, as evolved over the years, offers many distinctive and unique features:
Free supply of quality hybrid seeds to farmers for sowing, thereby saving them from the initial risk in cost of cultivation.
Necessary technical and operational assistance on better cropping practices.
Organizing farmers' rallies and visits to demonstration plots.
Post-harvesting support of threshing, weighing, packing, transportation of the output procured from farmers.
Assured procurement price well ahead of the actual cropping season, thereby mitigating the downside risks of the farmers with respect to market fluctuations.
Prompt cash payment to farmers at the time of procurement.
In substance, the company participates in sharing virtually all the major risks all through the entire cropping operations from pre-harvest stage to procurement operations. |
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