Scope, Opportunity and Importance of Contract Farming in India Choudhary S.K.1*, Kumar Rajesh1, Kumar Arun2 1Department of Agronomy, Bihar Agricultural College, BAU, Sabour, Bhagalpur-813210, Bihar 2Director Planning, Bihar Agricultural University, Sabour, Bhagalpur-813210, Bihar *Corresponding author email id: saurabhkkv2885@gmail.com
Abstract In India contract farming is operated or present from many year ago and it involves in commercial agricultural production of both large-scale and small-scale farmers. Interest in it continues to expand, particularly in countries that previously followed a central planning policy and in those countries that have liberalized marketing through the closing down of marketing boards. In modern day there is changing in consumption habits, such as the increasing number of fast-food outlets, the growing role played by supermarkets in many countries, and the continued expansion of world trade in fresh and processed products; have also provided the impetus for further development of this mode of production. Contract farming is proving to be a viable option for overall agricultural development in India. Contract farming help or ensures in food and nutritional security to the increasing population, raw material for an expanding industrial base, surpluses for exports, and a fair and equitable reward system for the farming community requires commitment driven contract farming which clearly is a viable alternative farming model. In India various Indian and multinational companies have begun contract farming successfully. The success of contract farming in any country dependent on a profitable market, the physical and social environment, and government support. However, effort is needed to reduce negative impacts which arise from contract farming via the active involvement of institutions governing the contract farming business. The overall future of contract farming in India is quite promising due to increasing trend for organised retailing amongst the burgeoning middle class population and the food safety requirements of the export market in developed countries. Top Keywords Contract farming, Co-operative farming, Corporate farming, Marketing contract, Private farming. Top |