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Multi-national corporations and agricultural development: a study of contract farming in the Indian Punjab

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  • Sukhpal Singh

    (Institute of Rural Management, Anand, Gujarat, India)

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    Abstract

    This paper examines the rationale, practice and implications of contract farming under the MNCs in vegetable crops in the Indian Punjab from the new institutional economics perspective. It is found that the MNCs deal with relatively large producers, their contracts are biased against the farmer, and the contract crops perpetuate many of the existing problems of the farming sector like high chemical input intensity, unstable future incomes, and social differentiation, though contracting has led to higher farm incomes and labour employment, especially for women. There is an inherent contradiction in the objectives of the contracting parties and that of the local economy and suitable institutions and organisations are not present in the state. Copyright © 2002 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/jid.858
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    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 14 (2002)
    Issue (Month): 2 ()
    Pages: 181-194

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    Handle: RePEc:wly:jintdv:v:14:y:2002:i:2:p:181-194

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    Web page: http://www3.interscience.wiley.com/journal/5102/home

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    1. Porter, Gina & Phillips-Howard[malt], Kevin, 1997. "Comparing contracts: An evaluation of contract farming schemes in Africa," World Development, Elsevier, vol. 25(2), pages 227-238, February.
    2. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Food Industry Vertical Integration," Staff General Research Papers 5032, Iowa State University, Department of Economics.
    3. Goldsmith, Arthur, 1985. "The private sector and rural development: Can agribusiness help the small farmer?," World Development, Elsevier, vol. 13(10-11), pages 1125-1138.
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    Cited by:
    1. Mungandi, Sepiso & Conforte, Daniel & Shadbolt, Nicola M., 2012. "Integration of Smallholders in Modern Agri-food Chains: Lessons from the KASCOL Model in Zambia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(3).
    2. Briones, Roehlano M., 2014. "Small Farmers in High Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," Discussion Papers DP 2014-23, Philippine Institute for Development Studies.
    3. Jose Blandon & Spencer Henson & John Cranfield, 2009. "Small-scale farmer participation in new agri-food supply chains: Case of the supermarket supply chain for fruit and vegetables in Honduras," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(7), pages 971-984.
    4. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    5. Jose Blandon & Spencer Henson & Towhidul Islam, 2009. "Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 251-267.

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