Post-harvest profile of red gram - Agmarknet

7.2 Contract marketing:Contract marketing is a system of marketing, where selected crop is grown formarketing by farmers under a ‘buy-back’ agreement with an agency (entrepreneur or trader orprocessor or manufacturer). In the wake of economic liberalization, it has gained momentumas the national and multinational companies enter into contracts for marketing of agriculturalproduce. They also provide technical guidance, capital and input supply to contracted farmers.Contract marketing ensures continuous supply of quality produce at mutually contracted priceto contracting agencies, as well as ensures timely marketing of the produce. Contractmarketing is beneficial to both the parties i.e. farmers and the contracting agencies.Advantages to farmers: -✸✸✸✸✸✸✸✸✸✸✸✸✸✸✸✸Price stability ensuring fair return of produceAssured marketing outlet and no involvement of middlemen.Prompt and assured paymentsTechnical advice in the field of production till harvestingFair trade practicesCredit facilityCrop insuranceExposure to new technology and best practicesAdvantages to contracting agency: -✸✸✸✸✸✸✸✸Assured supply of produce (raw materials)Control on need based production/post harvest handlingControl on quality of produceStability in price as per mutually agreed contract terms and conditionsOpportunities to acquire and introduce desired varieties of cropHelp in meeting specific customer needs/choiceBetter control on logisticsStrengthen producer-buyer relationshipThe Pepsi has already taken up contract marketing of pulses in Punjab.7.3 Co-operative marketing:The co-operative societies sell the member’s produce directly in the markets, whichfetch remunerative prices. Co-operative societies market the members produce collectivelyand secure advantages of economy of scale to its members.Services:Procurement and disposal of farm produceProcessing of produceGradingPackingStorageTransportCreditProtection against marketing malpractices46