Contract Farming: What are the benefits for the farmer?

The running costs of the company are also borne by the farmer

A memorandum of understanding between the company and the farmer was seen by It can be seen that the farm owner will build the shed on his own responsibility. He will also provide electricity and water supply, food storage, and adequate roads for the farm. Care, maintenance and supervision of the child is also his responsibility.

On the other hand, the company will provide children, food, medicines and disinfectants to the farmers.

The ‘formula’ for dividend distribution mentions all the expenses of the company, but does not include the expenses of water, electricity, chaff and labor of the farm. A ‘payment’ per kg is fixed for farmers.

Where the ‘ideal price’ per kg of food and child and even the company’s ‘operating cost’ per child have been estimated. The price of the drug will be a maximum of 15 percent higher than the market price, it is also mentioned.

The contract also contains the ratio of food to 2 kg in 35 days. It is also assumed that four percent of the chickens may die.

It is written in that contract, the farmer will get 12 taka per kg of chicken. His labor, water-electricity and chaff expenses have to be met from here.

He will get this 12 rupees if the cost of production is 88 rupees. If this ‘standard cost of production’ increases, the company will pay half of the increase, half will be deducted from the farmer’s commission.

According to the news, the company representative took the farmer’s land deed or bank’s blank check book as ‘security deposit’ before the contract.

Akash, a farmer in Jhenaidah, said, “Farmers don’t understand that much. Farmers who have gone into contract have become destitute. 12-14 percent don’t even get it. Instead, there are many problems with blank checks and land deeds.”