MahaFPC, the umbrella body of the Farmer Producer Company (FPC) in the state, has entered into a contract with its farmer members for procurement of onions for the current season. The company’s managing director Yogesh Thorat said that this will help in reducing the loss of the purchased stock. Since 2018, MahaFPC has procured around 1 lakh tonnes of onions from its member farmers. Under the model, the FPC procures onions from both member and non-member farmers and then MahaFPC takes care of its disposal. MahaFPC is a sub-agent of NAFED and implements schemes like Price Stabilization Fund (PSF) and Price Support Scheme (PSS) for NAFED.
Thorat said he has decided to enter contract farming considering the success of the model in potato. MNCs are entering into contracts with farmers to procure special varieties of potatoes for chips. Thorat said contract farming will see MahaFPC signing contracts with individual farmers. “MahaFPC will be bound to buy onion from the farmer at a predetermined price,” he said. They hope to bring stability in the open market with the pre-determined price, he added.
Interestingly, MahaFPC’s decision to enter contract farming comes months after the Center withdrew three controversial agriculture laws. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Agricultural Services Act, 2020 had formalized contract farming and provided adequate protection to farmers to prevent fraud. Maharashtra has a contract farming law, but it is rarely enforced. 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 the schedule and dispatch schedule.