Economics of Contract Choice

The phenomenon of contract farming (CF) has remained a controversial subject in the literature. In the recent years, the interest of policy makers, researcher and development planners in CF in general and broiler farming in particular as a mechanism to govern linkages between farmers and agribusiness firms has increased considerably. The agri-business proponents advocate CF as a key strategy for rural transformation based on a dynamic partnership between small holders and agro-industrial enterprises. It provides opportunities to both the parties to benefit from modern technology, marketing facilities and other services to boost their incomes. However, there is a counter argument regarding the benefits of CF to the small holders and reject the idea of equal partnership. They argue that CF may subjugate the peasantry to increased control and exploitation by capital, leading to a peculiar form of proletarianization. Since the CF system in India is a recent phenomenon, research in this field is still at the initial stage, particularly in case of broiler. The book presents the economics of contract choice of broiler production under contract and non-contract production system.