Punjab Agro Foodgrains Corporation

Punjab Agro Foodgrains Corporation (PAFC), a wholly owned subsidiary of Punjab Agro Industries Corporation, came into existence in 2002 with the objectives to carry out the marketing of agri inputs, procurement of foodgrains and support diversification of agriculture through Contract Farming. The  main objectives of the corporation, include all kinds of activities relating to Foodgrains, Minerals, Metals, Fertilizers, Chemicals, Pesticides, Machinery and Engineering Products including to process, sell, purchase, import, export, store, preserve or otherwise deal in all kinds of inputs and other materials required for agriculture, horticulture and other activities and to process, sell, purchase, import export, store, preserve, distribute or otherwise deal in all kinds of produce of agriculture, horticulture and other activities and to undertake, assist and promote operations pertaining to agriculture, horticulture and other activities.

The authorized and paid up Share Capital of the Company is Rs.50 million and is fully subscribed by PAIC.The turn-over of the Company is Rs. 16461.20 million as on 31-3-2007 and earned a profit of Rs.9.096 million after taxes.

PAFC provides the farmers with quality fertilizers, pesticides, insecticides, diesel, lubricants etc. PAFC Acts as a procurement agency on behalf of Food Corporation of India for procurement of food grains. The major crops procured are wheat and paddy in which the corporation has a share of 8-10%.

The Diversification of Agriculture through Contract Farming has grown over the years with area going up from 9029.36 hectares in the year 2002 to 102385.63 hectares during 2006-07. The objective is to shift area under wheat and paddy crops to the crops requiring lesser irrigation to conserve water and to improve soil health for better productivity. The crops being promoted are Hybrid rapeseed mustard (Hyola) and  Malting Barley etc.

In order to reduce labour costs, PAFC got developed crop specific equipments based on new technology which are made available to the farmers free of cost, for the crops undertaken in the Contract Farming.