According to Zion Market Research, contract farming generated USD 58.75 billion in 2022 globally and will touch the USD 78.42 billion mark by 2030, growing at a CAGR of 3.73% during the forecast period. The signs are encouraging for the contract farming companies in India in the fruits and vegetables segment, which is likely to experience the biggest boost.
Contract Farming Explained:
Suppose, A (a rice company) and B (a rice grower) enter a contract wherein both parties are supposed to honor their commitments.
-
Farmer’s Commitments:
B, the farmer, cultivates, harvests, and delivers the agreed-upon variety of rice while following the quality, production, and delivery guidelines outlined in the contract.
-
Company’s Commitments:
A, the company, buys the produce at a specified price and may provide the farmer with necessary inputs, such as seeds and fertilizers, technical guidance, and transportation services.
Herein, the farming happens under a contract, hence, the name. The “buyer” can be a corporation, governmental agency, entrepreneur, NGO, trader, retailer, or wholesaler.
Contract Farming Benefits:
Contract Farming is a mutually beneficial arrangement for both parties. Here’s how.
- Risk Sharing: The buyer and the farmer share production and market risks.
- Access to Inputs: The farmer receives the agri-inputs required for higher and better yields.
- Stable Income: The farmer receives a guaranteed market for the produce at a predetermined price.
- Quality Assurance: The company gets a consistent supply of rice that meets its quality standards for processing.
As it turns out, contract farming is an effective way to generate supplies for processing industries and exporters and add value to the agricultural sector.
Contract Farming in India:
Contract farming gained traction after the Indian government recognized it in 2003 with the Model APMC (Agricultural Produce Market Committee) Act, 2003.
A year later, the National Commission on Farmers laid down the code of conduct for contract farming and the National Policy for Farmers adopted the code with some changes in 2007.
States Promoting Contract Framing:
The following 15 States provisioned Contract Farming in their state APMC Acts.
| Andhra Pradesh | Chhattisgarh | Haryana |
| Himachal Pradesh | Jharkhand | Karnataka |
| Madhya Pradesh | Maharashtra | Mizoram |
| Odisha | Punjab | Rajasthan |
| Sikkim | Telangana | Uttarakhand |
- Suggested Reading: Top Stationery Company in India
The Government of India was keen to introduce tobacco contract farming in 2021 but had to retract due to severe opposition from the tobacco cultivators. (Read More)
Contract Farming Companies in India:
Now that the nitty-gritty of contract farming is out of the way, it is time to focus on the top 10 contract farming companies in India. Worldlywiser factored in all that mattered to curate the list, from their capacity and capability to the overall impact.
1. Patanjali Foods:
- Founded: 2006 (17 years ago)
- Parent: Patanjali Ayurved
- CIN: U24237DL2006PLC144789
Dedicated to organic growers, group farming, and prosperous farmers, Patanjali Ayurved walks into our list of top contract farming companies in India. The company acquires rice, wheat, and various herbs through contract farming in Punjab, Haryana, UP, and beyond.
The company implements the Patanjali Farmer Samridhi Programme (PFSP) to offer farmers training, technical assistance, and low-cost inputs, such as bio-fertilizers and bio-pesticides. The program aims to double the farmers’ income, reduce cultivation costs, and ensure value-added organic farm produce.
Patanjali Organic Research Institute (PORI) carries out the program with support from NSDC (National Skill Development Corporation) under the Ministry of Skill Development and Entrepreneurship (MSDE).
Patanjali also helps in certification and sales through E-NAM and other channels and buys the yield at the best market rates. Farmers can even expect a yearly increase in remunerations.
As a side note, Patanjali owns one of the top noodle brands, biscuit brands, atta brands, and rice brands, known for their taste and nutrition.
Useful Links:
- Email: [email protected]
- Phone: +91-8275999999, +91-7217010176
- Address: Agriculture Research Campus Near Patanjali Yogpeeth Phase-2 (Police Chowki) Delhi-Haridwar National Highway, Bahadrabad, Haridwar, Uttarakhand (249405)
Suggested Reading: Top Organic Farming Companies in India
2. Frito-Lay:
- Parent: Pepsico, Inc.
- Founded: 1961 (62 years ago)
- CIN: L24230DL1975PLC007908
PepsiCo’s Frito-Lay is the world’s leading potato procurement company and operates as the third-largest division in India with double-digit growth. Over 50% of its potatoes come through contract farming across Punjab, Uttar Pradesh, Karnataka, Bihar, West Bengal, Gujarat, and Maharashtra, covering over 6,400 hectares. Out of 12,000+ farmers in the program, 90% are repeat participants.
As one of the top contract farming companies in India, PepsiCo provides technology, inputs, and technical advice to boost farmers’ yield quality and quantity. PepsiCo offers attractive rates and index insurance to counter weather-related risks. The company also relays information on unfavorable weather conditions in real-time, at no cost to reduce risks for farmers.
Useful Links:
Contact Details:
- Contact Number: 914-253-3150
- Email: [email protected]
- Address: Level 3-6, Pioneer Square, Near Golf Course Extension Road, Sector 62-122002, Gurgaon, Delhi
3. Dabur:
- Founded: 1884 (139 years ago)
- CIN: L24230DL1975PLC007908
With an annual revenue of 115 billion Indian rupees as of 2023, Dabur is a global brand associated with healthcare, skincare, hair care, oral care, home care, digestives, juices, foods, and more.
Dabur comes across as one of the top 10 contract farming firms with 2537 contract farmers and 4188 acres under cultivation across 13 states, according to the Dabur Business Responsibility Report 2016-17.
The acre holding saw a 41.5% upturn from 2013 to 2014. While Himachal Pradesh has the highest number of contracted farmers (568), Andhra Pradesh has the maximum acre holding (3005).
Dabur has organized 12 training camps thus far, engaging over 800 farmers, and distributed 5 lakh seeds for free. The company has also undertaken a program for protecting endangered species of herbs and bee-keeping.
The program offers training to farmers on sustainable cultivation through 12 agencies across 12 states. Around 6,500 benefited from this program. Additionally, Dabur covers 8 cities, 116 villages, 13 districts, and 1,05,855 beneficiaries through different CSR initiatives.
Useful Links:
Contact Details:
- Phone: 0120-3962100
- Email: [email protected]
- Address: 8/3, Asaf Ali Road, New Delhi-110002
4. KRBL:
- Founded: 1889 (134 years ago)
- CIN: L01111DL1993PLC052845
Best known for the India Gate brand of Basmati Rice, KRBL is the world’s leading rice producer and miller. As of 2023, the company has a 25% share in the Indian branded basmati exports and a 30% plus share in the domestic market.
KRBL’s contract farming program covers 2,50,000 acres, 70,000 farmer families, and 65 dedicated extension workers, making it one of the leading contract farming companies in India.
As a part of the contract farming program, KRBL distributes superior seeds, provides sowing and transplanting techniques and sourcing inputs, and conducts seminars on pre and post-harvest management and the grain development cycle. Even the payouts are high and renewed yearly.
- Email: [email protected]
- Phone: + 91-8448893199, +91-120-4060398
- Address: C-32, 5th Floor Sector-62 Noida – 201301 (UP), India
5. Daulat Farms Group:
- Founded: 2009 (14 years ago)
- CIN: U74899DL1995PTC073146
One of the top contract farming companies in India, Daulat Farms operates multiple agriculture-related businesses with contract farming at its core. The company produces 224 organic products, 7 milk products, 5 poultry and cattle feed varieties, over 16 egg varieties, 8 fish products, 10 poultry breed varieties, 5 organic fertilizer varieties, and more.
Daulat Farms implements a unique contract farming program for organic agriculture, poultry, dairy, and aquaculture. The company has a network of over 8,600 farmers and 35,000+ acres of Certified Organic Agriculture Farms, Poultry Farms, and Dairy Farms across 19 states in India.
Its contract farming process starts with pre-season agreements and includes a buy-back guarantee, a fair and fixed contract rate, and ongoing technical support.
Daulat Farms collaborates with top seed companies selected after R&D trials. The idea is to ensure farmers receive the highest quality seeds to deliver higher yields and better quality.
It promotes Good Agricultural Practices (GAP), sustainable methods, disease management, feeding, and hygiene procedures through regular training programs for farmers.
The company’s last-mile pick-up services minimize the time between harvesting and processing. Over 100 company associates stay in direct contact with the farmers during the entire crop cycle.
- Suggested Reading: Top Vertical Farming Companies
Useful Links:
- Phone: +91 789 879 9394, +91 789 816 9394, +91 789 804 9394
- Email (Business Opportunity): [email protected]
- Address: Near Shadani Dabar, Next to Dumartarai wholesale Market New Dhamtari Road, Raipur 492001, Chhattisgarh, INDIA
6. Fortune Rice Ltd.
- Founded: 2004 (19 years ago)
- CIN: U15312DL2005PLC133708
Since 2004, Fortune Rice has been a leading manufacturer and exporter of basmati and non-basmati rice. The company focuses on producing paddy/rice compliant with EU food safety standards.
Fortune Rice has the numbers to be one of India’s best contract farming companies. It sources all its paddy through contract farming from 3000 partner farmers cultivating 20,000 acres in 3 districts.
The company shares technology and technical support during the entire crop season through qualified agriculture experts. It even provides pesticides at cost price upfront, with adjustment during procurement. No interest is charged.
Fortune Rice’s payment structure is generous, including a bonus of Rs. 1,000 per metric ton on the existing market price, and a guaranteed Minimum Support Price (MSP) of Rs. 23,000 per metric ton.
It sources at the higher of the two prices and deposits the full payment in the farmer’s account within 72 hours after sourcing. The farmers can walk out of the contract at any stage upon paying the cost of pesticides.
Contact Details:
- Email: [email protected]
- Phone: + 91-9259741609 (M), + 91-11-42564736
- Address: K-378, Village Nangla Chamru, G.T. Road, Dadri, G.B. Nagar, Uttar Pradesh – 201307, India
7. Sami-Sabinsa Group Limited
- Founded: 1991 (32 years ago)
- CIN: U24249KA1991PLC011880
Fifteen years on, Sami-Sabina has been relying on contract farming to source medicinal plants for its nutraceuticals, cosmeceuticals, herbal extracts, chemicals, and probiotics.
What began as a small enterprise with a few partner farmers is now one of the top contract farming companies with hundreds of partner farmers and 40,000 acres of land under cultivation. Besides India, Sami-Sabina has a strong presence in various South East Asian countries and Africa.
To its credit, the company has 447 US and international patents and 100 national and international awards, including the National Award for Quality Products (1994) and the DSIR award (2002).
Sami-Sabina offers the best prices and the latest technical knowledge to maximize farmer returns. The company also encourages partner farmers to embrace Good Agricultural Practices (GAP).
Useful Links:
Company Details:
- Email: [email protected]
- Phone: +91 80 6852 7777, +91 80 6852 7706, +91 80 2839 7974, 75, 78
- Address: 19/1 & 19/2 Peenya Industrial Area, Bangalore 560058, India
Suggested Reading: Deep Down of the Tobacco Companies in India
8. Breeze Agro:
- Founded: 2018 (5 years ago)
- CIN: U74999MP2018PTC047277
Breeze Agro, a flagship brand of Coolbreeze Solution Pvt. Ltd., is at the forefront of agricultural, horticultural, and forestry products and service delivery in India. Founded in 2018 in Jabalpur, Madhya Pradesh, the company has achieved international footing with a presence in UAE, Nepal, Sri Lanka, Bangladesh, Oman, New Zealand, Singapore, and Qatar.
Breeze Agro has a comprehensive contract farming program in place that offers farmers ongoing technical assistance from crop specialists, low-cost loans, high-quality plants, free transport facilities, affordable pesticides, and irrigation equipment. Plus, the farmers are free to choose their preferred market with the option of international markets.
As one of the top contract farming companies in India, Breeze Agro also ensures group contract farming for small-scale farmers.
Useful Links:
Contact Details:
- Phone: 18008894490
- Email: [email protected]
- Address: 4th Floor, Vishal Astra,12/A/A Scheme No 54, Opp Satya Sai School AB Road, Indore. MP
9. Appachi Cotton Company (ACC):
- Founded: 1946 (77 years ago)
- CIN: U17200TZ2013PTC034521
Certified by OE 100, IMO, GOTS, Appachi Cotton Company (ACC) is a Pollachi-based ginning operation. It owns Ethicus, India’s first ‘Farm to Fashion Organic & Sustainable Fashion Brand.’
ACC is credited with introducing the concept of Integrated Cotton Contract Farming (ICCF) that connects producers with consumers. The concept’s success has prompted the Tamil Nadu government to implement it in various cotton-growing districts. That’s a reason enough to include Appachi Cotton Company in our list of the top contract farming companies.
ACC has a farmer-friendly pricing model, which considers the labor invested by the farmer and other key factors. Rather than fixing prices in advance, the company encourages farmers to form self-help groups and sell their produce at the prevailing market rate.
The ICCF program guarantees farmers access to money and materials throughout the cultivation period. The farmers receive easy, low-cost credit from banks, quality seeds, and doorstep delivery of fertilizers and pesticides at discounted rates, along with expert advice and field supervision.
Although ACC exclusively deals in cotton, it also promotes the cultivation of millets, legumes, and vegetables to help farmers boost their income and meet dietary needs.
Useful Links:
- Email: [email protected]
- Phone: +(91) 9688011000
- Address: 46, Meenkarai Road, Zamin Uthukuli, Pollachi – 642004, Tamil Nadu, INDIA.
10. PRAN Beverages (India) Pvt. Ltd.
- Founded: 2010 (13 years ago)
- CIN: U15500WB2010PTC145385
Established in 2010, Pran Beverages is a growing brand associated with beverages, bakery, and confectionery products. The company has shaped a reputation for quality with its products renowned for their taste, freshness, and nutrition.
The company procures a chunk of raw materials through contract farming, mostly in West Bengal and North Eastern States. Pran Beverages offers decent remunerations, technological assistance, and agri inputs, like all top contract farming companies in India.
Contact Details:
- Phone: 1800-121-4899
- Email: [email protected]
- Address: Office unit No. 6B1, New Town Square, 6th Floor, Chinar Park, Atghara, Kolkata, West Bengal – 700136
Conclusion:
By now, you know a thing or two about the contract farming companies in India. These companies are success stories, having created success for themselves and contributed to farmer welfare, overall agricultural development, and the Indian economy in unique ways. Besides providing technical inputs, cultivation support, buyback guarantees, and better prices, they engage communities and promote sustainable practices.
Suggested Reading:
- Best Lighter Brands
- World’s Top Cigarette Brands
- Top Cigarette Brands in India
- Best Disposable Vape Brands
- Best Menthol Cigarette Brands
A wordsmith, avid traveler, rationalist, brand loyalist, sports-freak, and an independent researcher, Rohit has authored 18000 writeups for some of the leading online and offline publications in the past 10 years. He digs into information, weaves narratives, and distills complex subjects into engaging content.