Contract farming, modern retail beneficial to farmers, says Sharad Pawar

Minister for agriculture, consumer affairs, food and public distribution Sharad Pawar today came out in favour of contract farming, saying that contract farming can empower farmers with technology and provide them better market access.

He was speaking at the inauguration of the National Conference on Emerging Platform for Agriculture Marketing in New Delhi today. Pawar also expressed the hope that pricing arrangements through contract farming could significantly reduce the risk and uncertainty of market place.

He said that the emergence of organised retailing in recent years has led to demand for quality produce leading to rising private sector investment in supply chain infrastructure. Modern food retailing would lower marketing costs and lead to lower prices for consumers and higher realisation for farmers. Concerns being expressed about the impact of contract farming and organized retail chains for rural India and the small farmers need to be addressed, he added.

Pawar pointed out that the establishment of modern terminal market complexes would ensure both backward and forward linkages to farmers. The newly proposed electronic spot markets can provide a viable alternative to the existing practice of the mandi system, by improving the decision-making capability of the farmers and strengthening their bargaining power. The minister also called for an in-depth analysis of how marketing development infrastructure can be a catalyst to public-private partnership.