Globalization and Contract Farming in India - Advantages and Problems

Abstract

Contract Farming has been in existence for many years as a means of organizing the commercial agricultural production of both large – scale and small –scale farmers. In an age of market liberalization, globalization and expanding agri business, there is a danger that small- scale farmers will find difficulty in fully participating in the market economy. The era of globalization, the concept of ‘Contract Farming’ is an effective way to co-ordinate and promote production and marketing in agriculture. “Contract Farming can be defined as an agreement between farmers and processing or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices.