Economics of Contract Farming in Potato Cultivation: Micro Empirical Evidences from Hooghly District of West Bengal (India)

Abstract

Globalization has opened up several opportunities to the small farmers through organizing commercial mode of cultivation by engaging private sector in the value chain of production. Contract farming can be considered as an appropriate measure for the viable future of the small farmers as they can access input and credit support, technical assistance, assured price, and proper marketing opportunity which otherwise may not be obtainable to them. Under the circumstances, this paper attempts to analyze the potentiality of contract farming as an alternative mode of agricultural production in Hooghly district of West Bengal. Primary survey on a small group of farmers involved in the contract farming with Frito Lays was carried out in a selected region of the Hooghly district of the state of West Bengal. Empirical evidences suggest that contract farming can be an economically viable alternative (i.e. profitable) to large farmers in the study region. However, it has not emerged in a big way to provide means of livelihood to small farmers in the region. Limited participation of small farmers in contract farming can be explained by the stringent restrictions imposed by the contracting agencies.

Keywords: Globalization, Contract Farming, Potato Cultivation, West Bengal

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