NDLI: Impact of contract farming on profits of smallholders: Evidence from cultivation of onion, okra, and pomegranate in India

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Impact of contract farming on profits of smallholders: Evidence from cultivation of onion, okra, and pomegranate in India

Content Provider	Consultative Group on International Agricultural Research (CGIAR)
Author	Kumar, Anjani Tripathi, Gaurav Roy, Devesh Joshi, Pramod Kumar Karandikar, Bhushana
Organization	IFPRI - Indian Council of Agricultural Research (ICAR) Collaboration
Organization	IFPRI - South Asia Region
Spatial Coverage	India [IN]
Description	This paper attempts to quantify the benefits of contract farming (CF) on farmers’ income and investigates the determinants of participation in CF. This is based on a survey of 1,331 farmers from Maharashtra State in India engaged in onion, okra and pomegranate cultivation. The study, using 2-Stage Least Squares method and propensity score matching approach, reveals that CF ensures higher returns for smallholders to the tune of Rs 14.5 per kilogram over independent farmers. Access to institutional credit, extension services, farm size, personal ownership of transport and migration significantly affected farmers’ participation in CF. The empirical evidence of the benefits of CF for high-value export commodities should encourage government policies to promote and scale up the use of CF in India.
Sponsorship	United States Agency for International Development Indian Council of Agricultural Research
Related Links	https://cgspace.cgiar.org/items/19a4a1a4-2ea9-4480-b294-0c7b535bf589
File Format	PDF
Language	English
Publisher	International Food Policy Research Institute
Publisher Date	2019-01-01
Publisher Place	Washington, DC
Access Restriction	Open
Subject Keyword	Policies, Institutions, and Markets Income Onions Okras Vegetables Capacity Development Horticulture Smallholders Pomegranates Contract Farming Fruit Crops Punica Granatum
Content Type	Text
Resource Type	Article
Subject	Agronomy and Crop Science Food Science Plant Science

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