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Role of Contract Farming in Crop Diversification and Employment Generation: Empirical Evidence from Indian Punjab

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  • Pavneet Kaur
  • Naresh Singla
  • Sukhpal Singh

Abstract

Linking small farmers with modern agri-business firms through contract farming is viewed as one of the several ways to achieve crop diversification and enhance farmers’ income, besides bringing spill-over effects of such interventions for other local stakeholders like farm workers. This article examines the role of contract farming in crop diversification and employment generation in the context of Indian Punjab. Based on a sample of 50 contract farmers and 50 non-contract farmers for three firms each, the study shows that contract farming brings crop diversification and generates farm labour employment, particularly for women, due to the high value and labour-intensive nature of crops being grown under such arrangements. But, there exists a gender gap in wages and gendering of tasks, which demand policy and corporate attention besides regulatory oversight to achieve more equitable and pro-poor impact of contract farming.

Suggested Citation

  • Pavneet Kaur & Naresh Singla & Sukhpal Singh, 2021. "Role of Contract Farming in Crop Diversification and Employment Generation: Empirical Evidence from Indian Punjab," Millennial Asia, , vol. 12(3), pages 350-366, December.
    • Handle: RePEc:sae:millen:v:12:y:2021:i:3:p:350-366
    DOI: 10.1177/09763996211051300
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    References listed on IDEAS

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    1. Sukhpal Singh, 2005. "Contract Farming for Agricultural Development:Review of Theory and Practice with Special Reference to India," Working Papers id:246, eSocialSciences.
    2. Sukhpal Singh, 2016. "Rethinking Diversification of Agriculture in the Indian Punjab: An Examination of Strategy and Mechanisms," India Studies in Business and Economics, in: Lakhwinder Singh & Nirvikar Singh (ed.), Economic Transformation of a Developing Economy, edition 1, chapter 0, pages 77-96, Springer.
    3. Kolawole Ogundari, 2013. "Crop diversification and technical efficiency in food crop production," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(3), pages 267-287, February.
    4. Joshi, P.K. & Gulati, Ashok & Birthal, Pratap S. & Tewari, Laxmi, 2003. "Agriculture diversification in South Asia," MSSD discussion papers 57, International Food Policy Research Institute (IFPRI).
    5. Singh, Sukhpal, 2000. "Contract Farming for Agricultural Diversification in the Indian Punjab: A Study of Performance and Problems," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 55(3), September.
    6. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," 2002 ASAE 3rd International Conference, October 18-20, Jaipur, India 294714, Asian Society of Agricultural Economists (ASAE).
    7. Sharma, Vijay Paul, 2007. "India’s Agrarian Crisis and Smallholder Producers’ Participation in New Farm Supply Chain Initiatives: A Case Study of Contract Farming," IIMA Working Papers WP2007-08-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Singh, Lakhwinder, 2006. "Deceleration of industrial growth and rural industrialization strategy for Indian Punjab," MPRA Paper 799, University Library of Munich, Germany.
    9. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
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    11. David Dunham, 1993. "Crop Diversification and Export Growth: Dynamics of Change in the Sri Lankan Peasant Sector," Development and Change, International Institute of Social Studies, vol. 24(4), pages 787-813, October.
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    13. Tripathi, R.S. & Singh, Ram & Singh, Sube, 2005. "Contract Farming in Potato Production: An Alternative for Managing Risk and Uncertainty," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(Conferenc).
    14. Lakhwinder Singh & Nirvikar Singh (ed.), 2016. "Economic Transformation of a Developing Economy," India Studies in Business and Economics, Springer, edition 1, number 978-981-10-0197-0, December.
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    16. Sukhpal Singh, 2019. "Examining Global Competitiveness of Indian Agribusiness in the Twenty-first-century Asian Context: Opportunities and Challenges," Millennial Asia, , vol. 10(3), pages 299-321, December.
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    2. Solano-Gaviño, Juan Carlos & Siche, Raúl, 2024. "Smallholder Conflicts in Agribusiness Systems," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 15(01), January.

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