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India’s Agrarian Crisis and Corporate-Led Contract Farming: Socio-economic Implications for Smallholder Producers

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  • Sharma, Vijay Paul

Abstract

The paper discusses India’s agrarian crisis and the role of corporate-led contract farming in addressing these crisis. A two-stage Heckman model was used to explain determinants of participation in contract farming, and whether participation in contract farming affects farm income. The results indicate that contract farming has a positive impact on crop productivity and farm income. The socio-economic factors that influenced participation in contract farming were education, age, farm size, access to institutional credit, source of off-farm income and membership to an organization. Factors related to the likelihood of participation in contract farming slightly differed from the factors affecting farm income.

Suggested Citation

  • Sharma, Vijay Paul, 2008. "India’s Agrarian Crisis and Corporate-Led Contract Farming: Socio-economic Implications for Smallholder Producers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 11(4), pages 1-24, November.
    • Handle: RePEc:ags:ifaamr:53735
    DOI: 10.22004/ag.econ.53735
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    Cited by:

    1. Marc F. Bellemare, 2018. "Contract farming: opportunity cost and trade†offs," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 279-288, May.
    2. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    3. Xolile Mamba, Tangetile, 2016. "The role of contracts in improving access to credit in the smallholder livestock sector of Swaziland," Research Theses 243472, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Giel Ton & Sam Desiere & Wytse Vellema & Sophia Weituschat & Marijke D'Haese, 2017. "The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 13(1), pages 1-131.

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