Guidelines for Contract Farminq under backward linkages (BL) scheme.

Obiective of Contract farming :

To act as demonstration of model partnership between farmers & processors which (a)
ensures desired quality of raw material at reasonable prices to processors to enhance cost &
quality competitiveness of processing units, and (b) ensures quality inputs, services, best practices,
remunerative price to farmers, so as to promote the culture of contract farming.

Eligibility & quantum of assistance

I. Fruit & vegetable processing unik will be eligible.

> 10% of the total purchase made by a processor in a given year (subject to a cap. of Rs. 10
lakh] for a maximum period of 3 years would be reimbursed to the processor.

> Claim would be submitted as per the enclosed checklist through State Nodal Agency.

Contract between processor & fanners.

> Processor will sign a formal contract with at least 25 individual farmers for a minimum period
of one year (a model contract agreement format enclosed).

P Processor will give intimation of contract at least one month before the contract period to the
SNA who will forward a copy of the advance intimation about contract to the MFPl within 15
days after its receipt in the office of SNA under acknowledgement to the applicant

)i Processor will provide quality inputs (like seed, fertilizer, pesticide etc.), extension s e ~ c e s ,
best practices and remunerative price to farmers at agreed rates.

> Farmers will provide to the processor-desired quality & contracted qualrty of raw material at
agreed price.

Role of State GovernmentlSNA

> SNA will certify that they have physically verified the contract agreement and other
documents and found in order

Note: - Cleaning, Sorting, Grading and then Packing of fruits and Vegetables would not be covered
under this scheme.