ISAP Entrepreneurship series : Story 26 Gherkin Contract Farming by Channakeshava Sharma – Boon to Small and Marginal Farmers “During my job tenure as State Head of ITC at Mysore, I witnessed the potential of Contract farming to small and marginal land holders because of assured market, higher returns, timely supply of inputs and low risk factors. Indeed, Contract farming is one of the ways to make them competitive by enabling access to technology, credit and marketing” says Shri Channakesava K.N. Sharma, an Agriculture Post Graduate engaged in contract farming of Gherkin crop by covering 1000 farmers in Andhra Pradesh, Karnataka and Tamil Nadu. By acquiring sound experiences in Contract farming, Shri Sharma wanted to start his own Agri venture. In the year 2009, he left the job and joined the two-month free residential training program under AC&ABC Scheme at M/s. Terra-Firma Bio Technologies Ltd., Bangalore. After successful completion of the training, he registered his firm as “Bhakthi Agri Services” and submitted a sound project proposal of worth Rs.17/- lakhs to Corporation Bank, RPC layout branch, Bangalore. In the same year, the loan got sanctioned and NABARD also offered 36% subsidy. Subsequently, Shri Sharma started mobilizing farmers by conducting series of meetings and training courses. Initially, he covered the farmers of Karnataka State. In the first year, he covered 25 acres of assured area under Gherkin crop and got Rs.25/- lakhs as net profit. His confidence increased and he started thinking of a bigger project. Second year onwards, he has chalked out the Gherkin crop calendar and planned labour management in advance which had resulted into a big venture. At present, “Bhakthi Agri Services” is covering farmers from 80-100 villages in A.P., Karnataka and Tamil Nadu. The legal contracts with the farmers are very transparent. After signing the Memorandum of Agreement (MoA) in contract farming, farmers first availed the identity card, pass book and diary for keeping the details of availed inputs and finance transactions. Gherkin is a labour intensive crop, which requires labour through out its cultivation period. The major labour requirement is during harvesting period, which starts from 30th day after sowing and lasts up to 60 days. So he has recruited almost 500 skilled labourers for looking after 1000 acres. All these skilled workers are providing timely technical guidance, good quality seeds, fertilizers, pesticides etc., to the registered farmers of the firm. Shri Sharma says, “100% Buyback with prefixed price through contract farming is the mantra of success to both the partners (Company and farmer). A farmer can get net profit of Rs.60,000 to 1, 00,000/- within a span of forty to sixty days. The registered farmers of “Bhakthi Agri Services”, engaged in contract farming expressed that the “income of the family has increased after undertaking the cultivation of gherkin and they could acquire assets and enjoy better living standards”. The vision of the firm is to expand the business in Contract farming by involving crops like Cherry Tomato, Red and Yellow chilly and other exotic crops. The firm’s annual turnover is Rs.1.50 to 3.00 Crores. Shri C.K.N. Sharma appeals to young Agripreneurs to join hands with “Bhakthi Agri services” and master the management of Contract farming. He strongly believes that “Belief in the instinct leads to success”. To get coordinates of Channakeshava Sharma, please mail us at [email protected]
Posted on: Tue, 06 Jan 2015 13:06:44 +0000
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