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Contract Farming 
To enhance Bhutanese farmers in the purchase and use of agricultural output in efficient manner, the company introduced the contract farming in the western part of the country. Its main aim is to spread the benefits of the industry to the farmers and facilitate better linkage between agriculture and BAIL. Such a set assures an effective and adequate supply of quality raw materials to the industry and steady income and market for the farmers. 
Initially, BAIL started the contract farming for high value cash crops covering an area of 311 acres, and involving about 400 farmers. Under the contract, the farmers were provided interest free loans in kind such as planting materials, fencing materials, payable after 5 years, which was adjusted from the crops supplied to the factory. 
The company also provided free extension facilities to the contract farmers. Today the system carries on. The buy-backs are streamlined so as to assure the farmers of the potential markets for their products.
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