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Regular-article-logo Wednesday, 16 July 2025

Contract farming: A success story

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ANEETA SHARMA Published 27.06.08, 12:00 AM

Ranchi, June 27: Chandra Nath Bhagat of Sonedeepi village in Jharkhand has received the President’s medal for growing potatoes — yield of Atlanta variety here is considered among the best in the country.

This is not a one-off success story from the backyards of the rebel-ravaged state created eight years ago. Thousands of families — around five lakh people — in Ranchi, Lohardaga, Ramgarh, Jamshedpur, Koderma, Deoghar, Dumka, Bokaro, Gumla and Hazaribagh for the past three years have actively joined the supply chain of Pepsico Ltd, the MNC that makes cold drinks, fruit juices, Lays chips and Kurkure, through contract farming.

Growing mainly potatoes, which have less sugar content and are of low calorie, for the company, these farmers are also no longer dependant on government loans or bank finances. They say it takes long to come through. Instead, the farmers have entered into contract with Basix, a micro financing NGO, which is involved in promoting sustainable livelihood for the rural poor, women and others.

The tillers have to pay a staggering 21 per cent inte- rest for the loan they take from the NGO.

But, as Inder Mahto, a seasoned farmer from Pali village, who had been growing Pepsico potatoes in his 5 acres, said, they don’t mind the high interest as long as they don’t have to run from pillar to post and gratify people for aid. “Bank aur sarkar se lene mein satrah laphda hai, aur yeh to hamare darwaje atein hain (taking help from banks and government involves a lot of hassles; at least these people come to our doorstep),” said Mahto.

The MNC pays anything between Rsp 10 and Rs 10.50 per kg for their yield. Moreover, they are allowed to sell their ware in the open market if they get better rates.

Pepsico India Holding Ltd — Fritolay division — started off with a pilot project in 100 acres in Jharkhand in 2005-06 to grow potatoes for their chips, which spread to 500 acres next year and today, it covers 800 acres. They introduced seeds of Atlantic variety, Chipsona and Fritolay-1553, but Atlantic proved to yield the best potato in this region. Properly taken care of under the super- vision of the technical hands of the organisation, the yield could be 14 times of what is sown. In an acre, one is required to sow one quintal of potato seeds, said Radhey Shyam, Basix incharge between Ratu and Brambe.

Unit head of Basix in Jharkhand Vikas Kumar and field manager Rajesh Kumar said their aim was to help the rural masses with every livelihood activity, right from potatoes, peas to dairy, lac and tussar. “Everything should be made profitable,” they said.

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