Comparative analysis on contract scheme: security or a peril
Contract farming is usually seen as a useful mechanism to assist smallholders in overcoming market access constraints. However, in spite of economic benefits, high smallholder dropout rates from contract schemes are commonplace. The aim of this study is to postulate a mechanism that uses quantitative and qualitative data from the Indian States to show that smallholder farmers benefit from a resource-providing contract in terms of higher yields and incomes, but that most of them still regret their decision to participate within the contract scheme and would like to exit if they might.