Wednesday, May 27, 2015

Working with Farmer



The Druk Horticulture Pvt. Ltd. (DHPL), a private sector company has begun its journey with farmers.  It works with farmer in two ways: 
(1) Contract Farming with farmers organized into Producers Group, and
(2) Collaborative Farming with land owners having idle land who are willing to invest in their farm. 
The mode of contract farming has been adequately deliberated and refined. 
The concept of collaborative farming is being refined. 
Collaborative Farming
Idea: If someone is having 10 acres or more land and has the will and capacity to invest and share profit, the Druk Horticulture Pvt. Ltd. is willing to collaborate.
The modus operandi for Collaborative Farming:
1.      Land owner
1.       Hire Druk Horticulture Pvt. Ltd. for technical evaluation of farm and generate detailed report on investment economics including infrastructure and facilities, and crops and cropping calendars, and profit scenario.
2.       The owner, if accepts the plan, shall invest either directly or through Bank loans.  The total cost shall be borne by the owner including capital investment cost and operating cost including the salaries of managers and wages for worker.
Druk Horticulture Pvt. Ltd.
1.       Execute the work as planned and agreed upon and report to the owner.
2.       Maintain accounts of expenditure and submit to the owner on monthly, quarterly and annually (Balance sheet and P&L account). 
3.       Maintain complete transparency of the operation.
4.       Use technologies and agricultural inputs dealt by DHPL.
Profit Sharing
Once all the investment costs are paid and net profits is accrued over and above the operating cost, the net profit shall be shared at a ratio of 75:25 between the owner and the Druk Horticulture Pvt. Ltd. till the agreed period is over.
Social Benefit
1.       The unemployed youth will get job, who in turn upon gaining experience and confidence may like to go back to their own farm.
2.       Substitute import and increase export.
Pending Issue
Policy support to reduce the initial capital investment cost

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