IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v14y2002i2p181-194.html
   My bibliography  Save this article

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

Author

Listed:
  • Sukhpal Singh

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

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.

Suggested Citation

  • Sukhpal Singh, 2002. "Multi-national corporations and agricultural development: a study of contract farming in the Indian Punjab," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 181-194.
    • Handle: RePEc:wly:jintdv:v:14:y:2002:i:2:p:181-194
    DOI: 10.1002/jid.858
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/jid.858
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jid.858?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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. David A. Hennessy, 1996. "Information Asymmetry as a Reason for Food Industry Vertical Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1034-1043.
    3. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Vertical Integration," Staff General Research Papers Archive 10422, Iowa State University, Department of Economics.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gersch Inka, 2018. "Producer organizations and contract farming: a comparative study of smallholders’ market strategies in South India," ZFW – Advances in Economic Geography, De Gruyter, vol. 62(1), pages 14-29, March.
    2. 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.
    3. Cavatassi, Ramina & González-Flores, Mario & Winters, Paul & Andrade-Piedra, Jorge & Espinosa, Patricio & Thiele, Graham, 2016. "Linking smallholders to the new agricultural economy: The case of the plataformas de concertación in Ecuador," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 12, pages 375-410, International Food Policy Research Institute (IFPRI).
    4. 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.
    5. A. Haroon Akram-Lodhi, 2008. "Forum 2008," Development and Change, International Institute of Social Studies, vol. 39(6), pages 1145-1161, November.
    6. Viet Hoang, 2021. "Impact of Contract Farming on Farmers’ Income in the Food Value Chain: A Theoretical Analysis and Empirical Study in Vietnam," Agriculture, MDPI, vol. 11(8), pages 1-16, August.
    7. Kumar, Shiv & Chandra, Subhash & Singh, D.R. & Chaudhary, Khyali R., 2013. "Contractual Arrangements and Enforcement in India: The Case of Organic Basmati Paddy Farming," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(3), pages 1-8.
    8. Celina Schelle & Benno Pokorny, 2021. "How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    9. Anup Raj & Andrei Kuznetsov & Thankom Gopinath Arun, 2020. "Culture of Sustainability and Marketing Orientation of Indian Agribusiness in implementing CSR Programs—Insights from Emerging Market," JRFM, MDPI, vol. 13(11), pages 1-19, November.
    10. Marc F. Bellemare, 2018. "Contract farming: opportunity cost and trade†offs," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 279-288, May.
    11. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin Dsouza, 2022. "Monopsonists, Disruptive Innovation and Food Security: The Case of High‐Value Commodity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 460-476, March.
    12. Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.
    13. George Malindretos & Eleni Sardianou & Maria Briana, 2023. "Farmers’ Perception on Contract Farming in the Post-COVID Era: Empirical Study in Greece," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    14. 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.
    15. Rama, Ruth, 2023. "Technological Transfer Channels of Food and Beverage Processing Multinationals to Host Countries: An Empirical Analysis," MPRA Paper 118162, University Library of Munich, Germany.
    16. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    17. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    18. Thapa, Ganesh & Gaiha, Raghav Gaiha, 2012. "Food Security in Asia and the Pacific: The Role of Smallholders," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 9(1), pages 1-37, June.
    19. Anika Trebbin & Markus Hassler, 2012. "Farmers' Producer Companies in India: A New Concept for Collective Action?," Environment and Planning A, , vol. 44(2), pages 411-427, February.
    20. 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, vol. 15(3), pages 1-22, September.
    21. Barik, Prasenjit, 2021. "A critical analysis of India’s Contract Farming Act 2020," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 34(Conferenc), October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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, vol. 15(3), pages 1-22, September.
    2. Hu, Y. & Hendrikse, G.W.J., 2007. "Allocation of Decision Rights in Fruit and Vegetable Contracts in China," ERIM Report Series Research in Management ERS-2007-077-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    3. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Resende Filho, Moises de Andrade, 2007. "A Principal-Agent Model for Investigating Traceability Systems Incentives on Food Safety," 105th Seminar, March 8-10, 2007, Bologna, Italy 7897, European Association of Agricultural Economists.
    5. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    6. Moisés de Andrade Resende Filho & Brian L. Buhr, 2006. "A Principal-Agent Model For Evaluating The Economic Value Of A Beef Traceability System: A Case Study With Injection-Site Lesions Control In Fed Cattle In The Us," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 127, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. Unnevehr, Laurian J. & Jensen, Helen H., 1999. "The economic implications of using HACCP as a food safety regulatory standard," Food Policy, Elsevier, vol. 24(6), pages 625-635, December.
    8. Goodhue, Rachael E., 1997. "Production Control and Production Contracts: Why Do Integrators Control Inputs?," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35908, Western Agricultural Economics Association.
    9. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    10. Peng, Chao & Zeng, Yinchu & Huang, Bo & Yabe, Mitsuyasu, 2010. "The contracts between leading agribusiness enterprises and rural households: its effects on firm-level export of agricultural products," MPRA Paper 26499, University Library of Munich, Germany.
    11. Neda Trifković, 2014. "Food Standards and Vertical Coordination in Aquaculture: The Case of Pangasius from Vietnam," IFRO Working Paper 2014/01, University of Copenhagen, Department of Food and Resource Economics.
    12. Hongli Feng & David A. Hennessy, 2009. "Production and Abatement Distortions under Noisy Green Taxes," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(1), pages 37-53, February.
    13. Roberts, Shane & Brooks, Kathleen & Nogueira, Lia & Walters, Cory G., 2022. "The role of quality characteristics in pricing hard red winter wheat," Food Policy, Elsevier, vol. 108(C).
    14. Ouma, Emily & Ochieng, Justus & Dione, Michel & Pezo, Danilo, 2017. "Governance structures in smallholder pig value chains in Uganda: constraints and opportunities for upgrading," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(3), January.
    15. Rachael E. Goodhue & Dale M. Heien & Hyunok Lee & Daniel A. Sumner, 2003. "Contracts and Quality in the California Winegrape Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 267-282, December.
    16. McBride, William D. & Key, Nigel D., 2003. "Economic And Structural Relationships In U.S. Hog Production," Agricultural Economic Reports 33971, United States Department of Agriculture, Economic Research Service.
    17. Paulson Nicholas D & Katchova Ani L & Lence Sergio H, 2010. "An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-25, May.
    18. Gouranga Das & Ranajoy Bhattacharyya & Sugata Marjit, 2023. "Contract Farming and Food Insecurity in an Open Competitive Economy: Growth, Distribution, and Government Policy," JRFM, MDPI, vol. 16(4), pages 1-26, April.
    19. Lee, Mimi & Lerohl, Mel L. & Unterschultz, James R., 2000. "Buyer Preferences For Durum Wheat: A Stated Preference Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-14.
    20. Thomas Kopp & Ashok K. Mishra, 2022. "Perishability and market power in Nepalese food crop production," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 518-540, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:14:y:2002:i:2:p:181-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.