Jayant Oils ventures in to castor seed contract farming

Written by Commodities Bureau | Mumbai, Dec 28 | Updated: Dec 29 2007, 05:23am hrs
The largest producer and processor of castor in the world, Jayant Oils and Derivatives Limited (JODL), have ventured into castor contract farming in Maharashtra.

Currently, about 20,000 acres under contract farming touches the lives of 7,000 farmers. The company expects to increase the castor cultivation to one lakh acres by 2008-09 in the state as single or mixed crop. The company will offer assured price of Rs 1,200 per quintal for decorticated castor seeds to farmers in the state.

"Under this contract farming, the company will be supplying hybrid seeds and threshing of crop to farmers free of cost and also providing technical know-how of farming castor seeds. Transportation for procurement seeds from farmland will be entirely borne by the company. The company will invest about Rs 75 crore for this project," Rajesh Kapadia, managing director, JODL told reporters.

The entire produce of castor seed will be purchased by the company assured minimum price. Currently, it is subsidising the farmers through internal accruals. The company has tie-up with three major seeds companies for supplying of hybrid seeds to the farmers.