KUALA TERENGGANU: The Contract Farming Programme by the Federal Agricultural Marketing Authority (FAMA) is one of the strategies devised by the Terengganu state government to liberate farmers from the profiteering clutches of middlemen.
State Agriculture, Basic Industry, Food Security, and Commodity Assurance Committee chairman, Dr. Azman Ibrahim (pix), told the Terengganu state assembly today that the programme enables FAMA to purchase produce from farmers at current market prices.
He explained that if market prices dip below a fair threshold, risking harm to farmers, FAMA will employ the programme to set a floor price of 10 to 20 per cent above production costs to safeguard them from financial losses.
Addressing a question by Mohd Yusop Majid (Bersatu-Permaisuri), he also emphasised that farmers are not obliged to sell exclusively to FAMA; they may opt to sell elsewhere if offered better prices.
He mentioned that the Direct From Farm Sales programme allows farmers and smallholders to sell directly to consumers or selected FAMA outlets such as Permanent Farmers' Markets, Wholesale Markets, Agro Bazaars, and Kedai Rakyat Agro Bazaars.
Dr. Azman highlighted that the organisation of mega-sized programmes like the Terengganu Farmers, Breeders, and Fishermen Day (HPPNT) in the past has also resulted in an average sales revenue of up to RM1 million within the three-day event.
