Contract Farming is an important Way to Sustainable Agriculture in India

Published Categorized as Farming

Everything at the present day is undergoing change constantly. It is no exception that the arena of agriculture has also undergone a lot of change. The various aspects of agriculture is still evolving by the various methods of scientific applications. Over the years, it has been seen that the manual labour working on the fields has also been reduced. Though the manual labour involved in the farming process has been reduced however, the productivity has not reduced by an inch even. It has rather been seen that with more and more usage of machinery, the farmers have been able to grow more and thus, has also been able to store a large portion of the same for future sale.

It is very natural that the with the vigorous usage of the machines and technology in the field that the harvest season could be attended many times in a particular set of time. All the more, even though the farmers were and are still being able to grow food for the entire world yet their financial stability is a far fetched idea till date. Well, the most important thing that makes the farmers so insecure about their monetary savings is that the markets never pay the actual amount which the crops deserve. Rather, the farmers are paid way less than the market price and later on it is the markets that go about hoarding the crops and thereby selling it at high prices by creating artificial crisis.

Sustainable Agriculture in India

To help out the farmers from such dire state of problems, many companies go about implementing the fine aspects of contract farming. Over the years, the idea of contract farming has become extremely popular not only because it helps the farmers in earning a fare wage but also helps the farmers in raising a sustainable farming. Well, to make the idea of sustainable agriculture through contract farming clearer, we have listed the varied aspects in great detail.

How has contract farming helped in advancing the substantial agriculture in India?

1) What exactly is contract farming?

The contract farming has indeed become very popular and equally profitable for the farmers in India. Well, before discussing the ways by which, the contract farming benefits the farmers, it is very important that at first, we get to understand the various aspects of contract farming. Likewise, the contract farming as the name suggests primarily gets divided into the fact that wherein, farming occurs only in accordance with a pre signed contract between a company and the farmer.

What exactly is contract farming

To understand this in a greater detail, let us simplify this with an example. Companies like Pepsi co, they hire farmers and provide them with the necessary resources to grow a certain type of crop. They provide the monetary investment, the agricultural tools, the best quality seeds, irrigational cost, and also the money to procure the best manure and fertilizers. The farmers are then given a set period of time to grow the crops like say corn or tomatoes for instance and after the harvest season, the money is sent to the farmers. The money is decided while signing the contract. In a way, this process of contract farming is a great way to protect the farmers from being duped by the hoarders.

2) What are the benefits of the contract farming that makes the sustainable agriculture possible at present?

The farmers by using the contract farming method has a guaranteed income. It has been seen that the crops that the companies usually ask the farmers are usually a balanced one. By a balanced cropping, the farmers are at times signed to grow grains while on the other hand, they can also be asked to grow exotic veggies. This thereby refers to the fact that even when there is a drought or a  flood, yet then the farmers do not lose out any monetary profits.

benefits of the contract farming

Hence, on the contrary, the companies keep on helping the farmers during such trying times through various incentives. All in all, this contract farming not only has immuned the farmers from the weather abnormalities but has also provided them with various agricultural tools that transcend such weather limitations. It is needless to mention that in the truest sense, the sustainable agriculture has been reached through the method of contract farming.


The farmers before signing the contracts of the companies, he should be very alert and equally cautious about the terms and conditions involved in it. This contract farming has further cut down the works of thee middle men. This in a way, has helped the consumers to procure the best of the crops without any delay. Hopefully, in the years to come, the farmers will be benefited more from such farm methods.