Contract farming in Haryana fails to attract firms

Even though contract farming is proving to be a major hit in Punjab, corporates seem to be shying away from its neighboring state Haryana. The major factor behind it is late amendment of the Agricultural Produce Marketing Committee Act (APMC). Though the state amended the rules of the Punjab Agricultural Produce Markets Act, 1961 to lure private players for contract farming, it has failed to draw good results.

Moreover, the private players who are procuring agricultural produce from farmers at smaller scale are still awaiting the direct marketing scheme (DMS) to be launched by the Haryana State Agricultural Marketing Board (HSAMB) to start procuring at a larger scale directly from farmers without being legally bound.

There is only one corporate house, which has partnered with HSAMB for contract farming of malting barley in Haryana. SABMiller India—the Indian arm of SABMiller Plc—one of the world's largest brewers with popular brands like Foster's, Castle lager, Haywards and Royal Challenge has roped in 400 farmers across 2,500 acres. The initiative is spread out in the arid regions of the state that involve Gurgaon, Jhajjhar and Sirsa.