Impact of Contract Farming in Karnataka, India

Indian agriculture is in cross roads facing a complex situation in this globalization and liberalization era, than ever. Farm sector's contribution to National GDP is declining over the years. However, 70 per cent of the country's population still depends on agriculture. Under such conditions, small, marginal and neo marginal farmers find it difficult to cope up with the resultant volatility in the economy. Hence, they tend to be marginalized and results in migration of rural population to urban areas. The vast agro-climatic diversity, production potential, cheap farm labour availability and domestic and overseas market potential of India provides greater scope for Private sector's participation. Interestingly, in the recent past, National Agricultural policies of India favor Private sector participation through contract farming arrangements as Private agri-business firms and Multi National Companies are entering into contract farming with farmers. So, the present study was conducted on impact of contract farming on the economic status of farmers along with their suggestions to improve the status of contract farming in Karnataka.