ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Contract Farming through Agribusiness Firms and State Corporation

In order to overcome declining productivity and falling farm incomes in Punjab, the Johl Committee recommended that contract farming be undertaken to reduce costs and provide farmers with better inputs and technical know-how, thereby increasing agricultural yield. This paper compares direct contracts with agribusiness firms and indirect contracts with these firms through the state. Direct contract farming is observed to operate effectively, with positive outcomes for the farmers irrespective of the farm size. Indirect contracts seem to favour only those farmers with larger farms, who do not benefit as much as direct contract farmers.

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