Contract Farming: Whose Interest Does it Serve? | NewsClick

Vijoo Krishnan of All India Kisan Sabha (AIKS) speaking to Newsclick on the Modi government’s plan of inviting Multi National Companies (MNCs) into farming sector said, “This is going to affect the farmers as the companies would decide what would be the rent and prices paid to the farmers. It is going to be an unequal contract system as the companies in the name of meeting the quality standards would reject most of the produce and pay less.”

He said there are already companies that are involved in contract farm and added that “In Andhra Pradesh, an Israeli-American Company has taken up contract farming in a place called Kuppam and they are growing crops that would be used in bio-fuel.  Other big corporations like ITC, TATA and Pepsico are into contract farming and only procure items that are used in fast foods items – like chips, biscuits etc. We would be compromising on the food security of the country”

He gave the example of an MNC, Toyota Tsusho Sugar Trading Limited (TTSTL) that is to be set up in Andhra Pradesh and if the company is to continue with the new policy, it can directly buy sugar cane from the farmers at the price it determines and this would have an impact on other farmers and local sugar mills which would not have to give the mandated minimum support price (MSP).

In the hurry to push for contract farming in the country, are we going to further displace the farmers and push them to destitute?

Source: Contract Farming: Whose Interest Does it Serve? | NewsClick