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The Contract

Author

Listed:
  • Sudha Narayanan

    (International Food Policy Research Institute)

Abstract

It has been noted time and again that contract farming arrangements manifest a bewildering variety and that as an analytical category, perhaps the only thing that binds all contract schemes together is the contract. Yet even the notion of a contract is not straightforward in many developing country contexts. This chapter discusses the immense diversity of contracts and contract farming arrangements and the use of contracts to set the balance of power between contractor and grower. It highlights how at times contracts are written to control the production process and at other times to ensure that the firm can distance itself from the process. It also highlights a pervasive “signing without reading” problem in developing countries and the many suggestions to redress these challenges around the writing of contracts.

Suggested Citation

  • Sudha Narayanan, 2025. "The Contract," Palgrave Studies in Agricultural Economics and Food Policy,, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-3-031-76487-5_9
    DOI: 10.1007/978-3-031-76487-5_9
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