Building Farmer-corporate relationship: Analysis of contract farming and farm bills

Abstract

For millions of Indians, farming has always been a source of income. However, there have been few systems/models that guarantee farmers a market for their goods, much alone a fair price for it. Farmers have thrown away their produce on occasion due to a lack of purchasers. This is one of the coin's two sides. The Agri-based and food industries, on the other hand, rely on timely and enough inputs of high-quality agricultural output. The concept of contract farming was born out of the underlying contradiction of the Indian agricultural situation, which claims to create a proper connectivity between the "farm and market." Recognizing the importance and benefits of such a connection with the farming/producing community, several companies involved in agro commodity trading, processing, exports, and other related activities have attempted to develop practical systems/models that ensure a timely and consistent supply of high-quality raw materials at a low cost. This paper examines a few successful contract farming examples as well as some of the obstacles and complaints levelled at this new farm business model. Our study would revolve around identifying gaps in the contract farming in India and understanding the perspective of the farmers, corporates, and the other stakeholders in the contract farming process and suggest suggestions and recommendations for improving the farmer-corporate relations to push contract farming.