Sardar Patel Institute of Economics and Social Research, Thaltej, Ahmedabad
The case study of Agrocel Industries Ltd., a joint-venture company of Shroff group and Gujarat Agro Industries Corp. based in the Kutch district of Gujarat has been presented in reference with the promotion of organic cotton cultivation in the Kutch and Surendranagar districts of Gujarat. The company organizes its organic cotton cultivation through contract farming. The study has revealed that 193 farmers were cultivating certified organic cotton on area of 1274 acres in the selected districts. The farmers are enjoying a net gain of 14 to 20 per cent, resulting from higher revenues and lower costs. The motivation of the farmers to take up organic farming on contract is not baed on returns alone, there are benefits like supply of inputs such as seeds, bio-pesticides, bio-fertilizers, etc. on credit at their door step and that too at subsidized rates; hassle-free marketing of output as the company lifts the crop from farm gate; perceived benefits to soil and fertility, regular visits of field staff for guidance; and timely payment by the company.
