Demand for organic basmati rice, both at home and abroad, coupled with policy reforms in India have given rise to contract farming production in that nation. Organic basmic rice production, however, is highly susceptible to weather and pest risks. This study investigates the impact of smallholders’ perceived production risks on their adoption of contract farming in organic basmatic rice farming. We also assess the impact on yields, prices received, and the livelihood of producers. We use farm-level data from smallholder basmati rice farms in India and the endogenous switching regression method to account for heterogeneity.
