1Agriculture and Allied Sectors Vertical, NITI Aayog, New Delhi, 110001
2Project Appraisal and Management Division, NITI Aayog, New Delhi, 110001
3Department of Agricultural Economics, Sri Karan Narendra Agricultural University, Jobner, Jaipur, 303328, Rajasthan
4Institute of Public Policy, National Law School of India University, Bengaluru, 560072, Karnataka
*Corresponding author: adeeth07@gmail.com
Online published on 24 March, 2023.
Contract farming (CF) can catalyse demand driven agricultural production. CF is practiced by 5.5 lakh farmers in India. A law was introduced by the Government of India in 2020 to promote CF in India but was repealed after year-long protest by farmers. We review the evidence on CF, map evidence gaps, and discuss policy implications. Meta-analysis revealed that CF reduced farmers’ input costs by 28%, increased productivity by 20%, and profits by 51%. Furthermore, evidence gaps in outcomes such as educational attainment, nutritional security, diversification, sustainability, livelihood resilience, saving, and capital formation are discovered. Public policy implications are also discussed.
