The study was to help define the applicability, equitability and enforceability of contract farming. It would attempt to identify crops and regions suited for contract farming, components of contracts, credit requirements and suitable institutional arrangements for disbursal and recovery, safeguards to ensure contract performance, measures against non-performance and arbitration procedures to resolve disputes
The study reviewed relevant experiences and remedies. It involved four in-depth case studies of commodities grown under contracts [Poplars under the Wimco programme in the North, mainly Punjab/Haryana; Tomatoes and chillies under Pepsico/HLL/Nijjer programmes in Punjab and Sun-sip/Cleanfoods (Ex Wimco) in Andhra Pradesh and Karnataka; Seed multiplication under JK Agri-genetics, ProAgro and Nath Seeds in Andhra Pradesh, Maharashtra, Gujarat; Sugarcane cultivation and processing under Prawaranagar and Warnanagar co-operatives in Maharashtra, Modi Sugars in Uttar Pradesh and Sakthi Sugars in Tamil Nadu]. Sample surveys of about 50 contract and other growers for each commodity systems in the areas studied were also conducted as a part of the study.
