Associations of 13 Plains in the Sofia Region – Varun Agriculture Sarl – 2009 – Contract Farming Agreement

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Basic information



Community party

Bemanevika, Bekapila, Mahatsinjo, Ambohitoaka, Mahadrodroka, Manadriana, Ankaizina I, Ankazina II, Bealanana, Maevarano, Amparay, Ankobalava, and Ampatsifatsy Plains

Company signatory

Varun Agriculture SARL


Fruit, Maize, Pulses, Rice, Vegetables and Wheat

Project phase covered



National government: signatory?


Local government: signatory?


Was the agreement required by law?



50 years

Date of contract signature





Sofia Region

Source: URL


OpenCorporates ID

Listings in other databases

Listing of the parent contract at or

Summary of contract

  • Negotiation, representation, and other relevant context

    The peasants who are the owners of the land in the 13 different plains of the Sofia Region formed an Association of Persons. The Association of Persons is represented by the presidents of the associations of the 13 different plains individually (p. 1). All parties agree that Varun Agriculture is the exclusive owner of the produce, equipment, brands, projects, and marks (p. 4). Varun Agriculture has a technical consultant called Sodhai. Sodhai created some of the associations of the 13 different plains in order to facilitate Varun Agriculture to get the land allotted in their favor for agricultural developments (p. 2). Sodhai will be the intermediary and the coordinator for technical, social cooperation and any relation between the Association of Persons and Varun Agriculture. Sodhai will represent the Association in each transaction with Varun Agriculture during the realization and execution of the project. Sodhai will ensure the peaceful allotment of the land to Varun Agriculture (p. 4).

  • Governance, implementation, dispute resolution

    Any claim or dispute may be resolved amicably between the parties within a period of 60 days after the notification of the dispute. If no agreement is reached within 60 days after the notification of the dispute, it will be resolved through arbitration in accordance with the prevailing and applicable arbitration laws of Madagascar. The Courts in Madagascar in the region where the dispute arises shall have the jurisdiction over such disputes. The agreement and the rights and duties of the parties shall be governed in accordance with the laws of Madagascar (p. 4). The Association of Persons formed by the holders of the land in the 13 different plains agrees to respect and maintain healthy and cordial relations with Varun Agriculture and its employees (p. 2). All transactions related to the agreement can be communicated to the other party to the agreement through Sodhai (the consultant of Varun Agriculture). The term of the agreement is 50 years unless Varun Agriculture agreed to determinate the same and can be extended through mutual agreement of the parties for a period of 99 years (p. 4).

  • Community development obligations: Local content

    Varun Agriculture agrees to recruit or give preference to local workers considering their merits, performance and capabilities (p. 3).

  • Community development obligations: Infrastructure and social services

    Varun Agriculture agrees to set up social and cultural infrastructures in the region where necessary for the implementation of the project, such as a health center, schools and training, public institution, road infrastructures, drinking water, housing and equipment for security guards (p. 3).

  • Community development obligations: Other

    Varun Agriculture agrees to grant 30% of the harvest to the landowners/members of the association of the plain where the harvest was produced (p. 3). The Association of Persons representing the holders of land in the 13 different plains agrees to sell their share of cultivated products to Varun Agriculture at the prevailing local market price in that region, and Varun Agriculture agrees to buy it (p. 3). The Association of Persons authorizes Varun Agriculture to sell the cultivated products or produce of lands to any party and in any manner (p. 2). Varun Agriculture agrees to sell the produce following the percentages established in the agreement unless better selling options are available or the circumstances otherwise demanded (p. 3-4). Varun Agriculture agrees to take care of the development of the plains, finance and bring equipment required for cultivation, bring good technology and experience for the implementation of the project (p. 3).

  • Environmental and social protection

    Varun Agriculture aims to improve the level of life of the population of the Sofia Region by indirectly increasing the sources of income of the families and the development of agricultural activities (p. 2). Varun Agriculture agrees to respect all the traditions and the social disciplines of the region where the project is focalized (p. 3).

  • Transparency or confidentiality

    The land owners, the Association of Persons formed by them, and Sodhai (consultant of Varun Agriculture) agree to keep all the information strictly confidential; it shall not be disclosed in any circumstance (p. 4).

  • Other noteworthy clauses

    The Association of Persons formed by the holders of the land in the 13 different plains agrees to give the land to Varun Agriculture for agricultural or any other purpose. The Association of Persons agrees to ensure that the land given to Varun Agriculture will have no other claims from third parties and will be free of nuisance, possession and other hassles. The Association of Persons undertakes to take care and respect the use of infrastructures under construction. The Association of Persons undertakes to agree to all the decisions by Varun Agriculture related to cultivation and growing of any agricultural products in the allotted regions and will not interfere in any manner with its work, technology, inputs or resources (p. 2).