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Profits from participation in contract farming: Evidence from cultivators of onion, okra and pomegranate in Maharashtra, India

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Listed:
  • Tripathi, G.
  • Kumar, A.
  • Roy, D.
  • Joshi, P.

Abstract

Abstract The paper attempts to quantify the benefits of contract farming on farmers income and investigates the determinants of participation in contract farming. This is based on a survey of 1,331 farmers engaged in cultivation of onion, okra and pomegranate from Maharashtra State in India. Descriptive statistics, regression analysis (using instrumental variable) and propensity score matching have been used in the analysis. The study reveals that contract farming, by connecting smallholders to high-end international market, ensures them with higher returns to the tune of Rs 14.5 per kilogram over independent farmers. Access to institutional credit, extension services, farm-size, ownership of transport, and migration significantly affected farmers participation in contract farming. The empirical evidence on benefits from contract farming in high value export commodities should induce conducive policies for promotion and upscaling of contract farming in India. Acknowledgement : We are grateful to the United States Agency for International Development for extending financial support to conduct this study.

Suggested Citation

  • Tripathi, G. & Kumar, A. & Roy, D. & Joshi, P., 2018. "Profits from participation in contract farming: Evidence from cultivators of onion, okra and pomegranate in Maharashtra, India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277106, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277106
    DOI: 10.22004/ag.econ.277106
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