The Hindu Business Line : Royal Classic ups area under cotton contract farming

THE Tirupur-based Royal Classic Group, which owns the Classic Polo and Smash brands, has increased seven-folds the area under cotton contract farming, according to Mr R. Sivaram, Executive Director.

"We started with 750 acres in October 2004. The crop was harvested in February 2005. It was our first experience and we had advised the farmers to raise the RCH variety," he told Business Line.

During the current season, the group has managed to cover 5,000 acres in and around Dindigul and Erode (covering 80 villages).

In January last, the group entered into a tripartite agreement with the State Government on contract farming.

While the Government machinery identifies and certifies the land, Royal Classic guarantees the purchase at minimum guaranteed price and the grower is assured of buyback of the farm produce.

The main varieties raised for the group's consumption are RCH Bt cotton and Surabhi, a desi variety.

"Our daily requirement is 15 tonnes. We are expecting the yields to surpass our requirement this season because the weather has been favourable so far. It is a 60 day-old crop."

Mr Sivaram said the yield per acre had risen from 4-5 quintals some time back to 12.5 quintals in select fields in Erode area.

The group has agreed to a support price of Rs 1,850 a quintal for the RCH Bt variety.

But Mr Sivaram said the company had assured the growers to either pay the minimum guaranteed price or the market price, whichever was higher.

But does the company turn down the produce after agreeing to buy in the first place?

"We do not refuse, unless there is some setback in fibre strength and quality. But this is hardly 3-5 per cent. The dues are settled immediately."

To a query on inputs, he said the company supplied the seeds at subsidised rate.

"At present, the seed supplies are sufficient. But in view of the increasing acreage, we are planning to promote seed villages."

But Royal Classic is not keen to extend the cover to distant places. "The Government is recommending large areas in the Cauvery belt. But we have certain constraints in operations - in getting experienced field officers, imparting training programmes, procuring and transporting the produce, etc."

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