NASA Agro initiative to produce quality crops

Small companies in Punjab are taking steps to help farmers to grow high-yielding varieties under contract farming.

One such effort has been initiated by Faizilka-based NASA Agro Industries Ltd in which the company has planned to foray into 'Quality Contract Farming' for cotton crop with the farmers of Punjab. The Managing Director of the company, Sanjeev Nagpal said the company had decided to provide cotton seeds to the selected farmers with a buy-back arrangement.

According to him, an area of 5,000 acre would be a minium viable proposition for such a project. But the farmers in the region were so enthusiatic, that they might cover an area of about 15,000 acre under the contract, he said.

Farmers get equitable returns on all varieties of cotton under the MSP (minimum support price) regime. So their orientation towards the quality improvement was less, he said. But in the last few years, local enterprenuers, in collaboration with the CII (confederation of Indian Industries) and Punjab Agro Industries had been encouraging farmers to produce better quality crops, which fetched them higher returns. Consequently, the per acre yeild of cotton in the state had increased from 5 lakh bales per annum to 20 lakh bales per annum in the past five years.

The cultivation of good quality of cotton had reduced the wastage at spinning level from 35 per cent to 15 per cent. So, the income levels of farmers were rising. Nagpal said the company would pass on the entire tax benefit to the farmers who entered into contract with them. He added that cotton in Indian market was sold at about Rs 17 per kg, whereas imported cotton costs about Rs 24 per kg.

"We aim to eliminate this difference and raise our farming practices to the global standard", said Nagpal.

NASA Agro has hired 30 persons specialised in agriculture (some of whom are agriculture graduates) to apprise the farmers about the new agriculture practices. The company has also tied up with the PAU (Punjab Agriculture University) for technical guidance, inputs and lab testing facilities.

NASA Agro has its cotton ginning unit in Faizilka with a capacity of 110 bales per day. The company plans to process the cotton bought from the farmers and sell cotton yarn to the bulk users.