How beneficial and how harmful for contract farming?

✅ Contract agriculture means -

Contract farming means that the farmer cultivates his land, but not for himself but for someone else.

The farmer does not have to spend money on contract farming. In this, a company or a person contracts with the farmer to buy the crop grown by the farmer at a fixed price at a given time. In this, the contractor's expenses including manure-seeds, irrigation and wages are of the contractor. According to the contractor, the farmer cultivates.

The price, quality, quantity and delivery time of the crop are decided before the crop is grown.

✅ Benefits of contract farming:

1. In contract farming, private companies will sign an agreement with the farmers at the time of sowing. According to the farmer, the value of the crop will be determined in advance.

2. Farmers get higher prices than the market.

3. The farmer remains free from the risk of price fluctuations.

4. The farmer gets an opportunity to learn by contracting with big companies.

5. There is no uncertainty about the availability of agricultural products of the contracting company.

6. There will be no middleman between the farmer and the contractor.

✅Challenges of contract farming:

1. In contract farming, farmers face the problem of timely payment.

2. Arising of disputes between companies and farmers.

3. Farmers may also be exploited indirectly.