Contract Farming Resource Centre

The Impact of Contract Farming on the Welfare and Livelihoods of Farmers: A Village Case Study from West Bengal

Organization University of Leeds
Year 2021

[Ray, N., Clarke, G., & Waley, P. (2021). The impact of contract farming on the welfare and livelihoods of farmers: A village case study from West Bengal. Journal of Rural Studies, 86, 127-135.]

This paper provides a case study of the impacts of the expansion of contract farming by PepsiCo on small-scale farmers in a small village in West Bengal, India. Through a series of detailed focus group and subsequent one-to-one interviews, we explore whether these local farmers are financially better off when tied to contracts with larger firms, whether they benefit from enhanced training and knowledge about better farming methods and whether they feel they are involved in genuine partnerships and the consequent implications for relationships around status, power and trust. The paper concludes that there are many concerns over contract farming some of which have not been discussed in the literature to date. The paper also reports on different types of coping mechanisms operated by small or marginal farmers, which in some cases, breaches the contracts made with PepsiCo.