MahaFPC, the umbrella body of Farmers Producers Company (FPC) in the state, has enter into a contract with its farmer members to procure onions for the present season. This would help reduce losses of procured stock, said company Managing Director Yogesh Thorat. Since 2018, MahaFPC has procured around 1 lakh tonnes of onions from their member farmers. Under the model, the FPCs procure onion both from member and non member farmers and then MahaFPC takes care of its disposal. MahaFPC is a sub-agent of NAFED and implements schemes such as Price Stabilisation Fund (PSF) and Price Support Scheme (PSS) for NAFED.
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Thorat said they have decided to enter into contract farming after looking at the success of the model in potato. Multinational companies have been entering into contracts with farmers to procure a special variety of potato for chips. Thorat said contract farming would see MahaFPC signing contracts with individual farmers. “MahaFPC would be duty-bound to procure onions from the farmer at a pre-determined price,” he said. With a pre-determined price, they hope to bring stability in the open market, he said.
Interestingly, MahaFPC’s decision to enter into contract farming comes months after the Centre withdrew the three controversial farm laws. The Farmer’s (Empowerment and Protection)Agreement on Price Assurance and Farm Services Act, 2020 had formalised contract farming and provided enough protection to farmers to prevent cheating. Maharashtra has a contract farming law, but it is hardly implemented. Contract farming agreements will be signed with the farmer in the months of April, May and farmers will deliver the produce to MAHPC as per an agreed time and schedule of dispatch.
