Organization Centre for Development Studies, Thiruvananthapuram, Kerala, India

Year 2011

This paper discusses the performance of contract farming in Mahbubnagar and Karimnagar districts of Andhra Pradesh. It compares contract farming in gherkin and rice seed with non-contract farming. It shows the difference in the characteristics of contract and non-contract farm households. Delayed payment, lack of credit, scarcity of water, and difficulty in meeting quality requirements are found to be the major constraints faced by contract farmers. Whenever there is a decline in productivity, the concerned contracting company has a tendency to shift production to other farmers and also to other regions.