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IIM meet endorses contract farming

August 12, 2007 19:20 IST

A three-day international conference on Agri-Business and Food Industry in Developing Countries, that concluded in Lucknow on Sunday, has strongly endorsed propagation of contract farming in the country.

Experts drawn from different parts of the country and abroad were of the view that the current boost to the agri-business through entry of large business houses would eventually benefit the farmer in a big way.

Hosted by the Indian Institute of Management in Lucknow in collaboration with Tennessee State University and South Carolina University of the United States, the conference drew representation from nearly two dozen international organisations based in US, Canada, Germany, Netherlands, South Africa, Indonesia, Pakistan and Bangladesh.

Describing the meet as a "first of its kind" in the country, IIM-Lucknow director Devi Singh expressed deep concern over the poor focus given to the agri-sector in the country so far.

"Other than the IIMs at Lucknow and Ahmedabad, none of the leading business schools in the country have cared to give due focus to this sector," he lamented.

"Sadly, there were only just about 30 students in each of the two institutes to pass out as full fledged agri-business managers," he said adding, "that is why there was need to do much more to tap the huge potential of this sector."

Devi Singh was of the view that the entry of big business houses in the agri-food business now would do wonders to the rural economy.

"Agri-business is going to add a substantial amount of exports from India now that big private investments were being made in this sector," he hoped.

Citing the example of Reliance Industries, he added confidently, "Farmers will definitely gain out of the Reliance model of initiatives being taken in different parts of the country, including Uttar Pradesh."

Speaking at the valedictory function, K S Mani ,chairman of Agriculture Produce Export Development Agency of the Union Commerce Ministry said, "It is time for entrepreneurial talent to tap this opportunity and invest generously in this hitherto neglected area."

He however warned, "but let us not follow the models created by the West; let us develop our own model to suit the Indian ethos."

Like most other experts, Member of the National Commission on Farmers R B Singh too hailed the decision taken by several other states to promote contract farming.

"Contract farming will be the key to success for farmers in UP," he said, while adding a word of caution, "however, what needs to be ensured is that the contract is transparent and is farmer-friendly so as to be intelligible to the innocent farmer."

Among other key issues discussed at the conference were the need for development of suitable agribusiness management education systems, development of appropriate institutional mechanisms for new evolving concepts like organic farming, contract farming, rural retailing, bio-fuel, microfinance, agriculture risk management, besides strategies in the light of an impending World Trade Organisation regime ahead.

Polly Wilson in Lucknow