Shivakumar was once a farmer who was into vegetable cultivation. Beans, potato, cabbage, carrot... he cultivated all these and more. But, gradual dip in vegetable prices, extreme dependence on rain and marketing problems dogged him to no end. That was when some good samaritans from an NGO that frequented his hometown Billinakote near Dobbspet in Nelamangala taluk told him about the advantages of herb cultivation. Though Shivakumar was apprehensive in the beginning, he decided to take the plunge and get into herb cultivation full-time.

Well! That was almost five years ago. Today, Shivakumar is a different man. He is no longer the man he was when he cultivated vegetables. He is happier, content and most of all, free from financial problems that gnawed at him earlier.

“Vegetable cultivation depends a lot on external factors like weather and market. At times, we had to throw our produce away for want of buyers. Further, middlemen gobbled up most of our profits. Finally, we would be left with nothing but debts and more debts,” he says, recalling his days as a vegetable farmer as if it were a nightmare.

Since his shift in cultivation to herbs, Shivakumar says his annual savings are anything from Rs 30,000 - 40,000 per acre. And, he owns about 5 acres of land.

However, Shivakumar is not alone in scribing this success story. Lending him a helping hand was Gram Mooligai Company Limited, an organisation formed to provide assured market support to medicinal plant producers.
With more and more pharmaceutical companies preferring to engage and empower farmers around their facility as part of their corporate social responsibility, it is a win-win situation for both the farmers and the pharmaceutical companies. In Shivakumar’s own words, “Our job is to just grow the herbs that the company wants. The rest is taken care of by the company we are growing it for.”
So, Shivakumar who grows a herb named Kudre Masale Soppu, takes the yield once a month. Once the product is ready, he calls up the person concerned and there ends his job. The company takes care of the transportation of the produce.

“I get my money also immediately,” says a beaming Shivakumar who adds that herb cultivation does not consume a lot of water.

“Expenses are also not much as organic manure is what I use,” he says. The cows in his shed provide him with the necessary amount of kottige gobbara (dung manure).

Initially, only Shivakumar and a few other farmers opted out of vegetable cultivation to get into the cultivation of herbs. But, very soon, more and more farmers joined Shivakumar as they witnessed the advantages of getting into contract farming.

Yes! Contract farming is the name given to this arrangement where a farmer cultivates his land exclusively for some company, implying a long-term commitment to the project. Once the farmers express their desire to be a part of contract farming, they are trained by professionals from the company on the ‘how’ and ‘why’ of cultivation. The emphasis is however on organic cultivation.

Shivakumar is associated with The Himalaya  Drug Company which sources a certain percentage of its herbs from small and marginal farmers.

According to Saket Gore, Business Head, Consumer Products Division, The Himalaya, “Presently, about 20 per cent of the total requirement of herbs like bhringaraja, nutgrass, turmeric, neem and amla are procured from farmers around the facility, which we plan to increase to 50 per cent in the near future.”

Contract farming is beneficial to the company too, as it can be assured of quality produce.

“Western markets are very conscious about what goes into production. They support environment-friendly practices. Hence, we stress on organic farming and train the farmers in growing organic herbs,” says Mr Gore.
“Engaging local farming community also has the added advantage of saving on fuel spent on transportation, thereby doing our bit to reduce the carbon footprint,” he adds.

As far as Shivakumar is concerned, “The herbs are procured at a fair market price. At times, we are also being given money in advance to meet our extra expenses, if any. The best part of it all is that we do not have to deal with wily middlemen who are out to exploit us.”

Contract farming does appear a blessing to farmers like Shivakumar. With agriculture increasingly seen as a risky proposition, the promise of economic security within the contract farming system looks very attractive. 

Small-scale farmers are frequently reluctant to adopt new ideas because of the possible risks and costs involved. This is where NGOs pitch in with their support and liaise between the farmers and the corporate companies. The trust the NGOs would have gained by their service to the community helps the farmers in making their decisions.
“It is observed that the rate of acceptance to new ideas is high when delivered through the channel of a local NGO. Moreover, it is important to select NGOs that also operate on the principle of sustainability, especially when implementing a project that aims to be self-sustaining in the long-run,” adds Mr Gore.

However, it is heartening to note that farmers like Shivakumar no longer stick to traditional methods of cultivation but adopt new ideas. Winds of change are definitely blowing, and how?


The WHY bit

* Assured income.
* No exploitation through middle-men. 
* Fair price for produce. 
* Not subjected to the vagaries of the agricultural commodity market. 
* Application of better farming techniques through training.
* Linkages with the market.