CONTRACT FARMING: A REMEDY OF POOR FARMERS IN INDIA

Cost of cultivation of small farmers is increasing due to higher price of input of farming but they are getting profitable price. It is common phenomenon that price of crops decrease during the pick season of farming. So farmers face tremendous problems in marketing of their articles. The problems will be more tragic in case of vegetables since farmers cannot enjoy the facility of cold storage. As a remedy of this great problem the concept of contract farming has raised in 2003-2004 in India. The process of contract farming in India involves scientific and optimum use of land and farm resources for maximum output of agriculture produce. Small farmers practicing primitive agricultural methods for cultivation and harvesting of crops. But with the liberalization of Indian economy, there has been a sudden spurt in contract farming in India. Practice of this farming may bring revolution to the poor farmers by successful implementation of it.