This article examines the rationale, practice and problems of contract vegetable cultivation in India`s agriculturally developed Punjab, which has been facing the challenge of sustainable growth since the early 1980s. It should be noted that agro-industries deal with relatively large producers and their contracts directed against the farmer maintain the existing problems of the agricultural sector, such as the high intensity of chemical inputs and social differentiation. However, the contraction has led to higher farm incomes and increased employment for workers. There seems to be an inherent contradiction between the objectives of the Contracting Parties and those of the local economy. The most common point in arguments against contract farming in India is the aggressive acquisition policy of large companies, which will have a detrimental effect on farmers and the farming community. Opponents of the idea of contract farming vehemently deny that an aggressive land acquisition policy will leave farmers destitute. Other popular arguments include the commercialization of agriculture with the use of high-tech machinery that will deprive hundreds of thousands of landless workers of their jobs, and reduced soil fertility due to the excessive planting and harvesting that contract farming needs to meet the quantities demanded. Contract culture is a new idea, but are short-term gains worth long-term drawbacks? But a company that is only interested in profit maximization and contract farming would be the least interested in preserving land and soil. Sustainable development is not on the agenda of companies. The problems faced by farmers in contract farming are listed below: An ideal contract between farmers and companies is that they have a mutual understanding of contract cultivation could lead to the cultivation of foreign varieties in India`s fields. For millions of people, locally grown plant varieties have provided food and nutrition for centuries. When these varieties disappear, the population will suffer from malnutrition, as is the case in many places today.

In addition, recent laws to facilitate contract culture in India are not very well thought out and often impose costs and restrictions on the parties, which increases the time and cost of entering into a contract. This is particularly difficult for smallholder farmers, who find it difficult to break even and make a profit due to the competitive nature of the market. Opponents of contract farming in India argue that there are other, more effective methods of government that can be implemented to improve the economic situation of farmers in India, such as cutting out middlemen and improving access to credit facilities and Sabzi Mandis. Alternatively, in the hope of making quick money with their farmland, farmers will be interested in donating their land on a contractual basis. You can also get detailed information about the programs the government has launched for contract farming in the 2018 Model Law on Contract Farming. Contract farming will prove catastrophic for the lives of millions of people in India linked to the agricultural sector. How? Let`s take a look. Farms cannot operate without labour.

However, mechanized agriculture will gain importance in contract farming, leading to a decrease in the number of agricultural workers. In a democratic country, a farmer has the right to offer his land on a contractual basis. So why are there concerns about agricultural land use? The reason is that today, by focusing on corporate expectations and interests, the government has ignored the rest of the country. More than 75 years after independence, India remains a predominantly agrarian economy that depends on its farmers to work hard and harvest India`s diverse and fertile soils. Farmers are the backbone of the Indian economy and as such must be protected and protected from various economic forces such as inflation and recession. Farmers often have to deal with fluctuating prices for their products and generally find it difficult to make less profit from the sale of their products. In addition to low yields, most farmers in India own small farmland and a significant portion of the total number of farmers in India is landless. They usually find work on the land of farmers who own larger plots. Official government website for more information on contract farming //vikaspedia.in/agriculture/market-information/contract-farming-a-mechanism-of-alternative-marketing Currently, the use of machinery on small farms is not profitable. But that would be the obvious option for a contract agricultural agency that owns larger acreages.

This would lead to an increase in rural unemployment. Contracting companies come only for profit. Agriculture becomes a business, not a way of life or a base that preserves the well-being and dignity of the family. To reduce this problem, contract farming was launched to maintain the balance of benefits for farmers and businesses. Contract farming is a type of farming in which the farmer enters into a signed agreement (contract) with a buyer or intermediary to produce a predetermined quantity and deliver it to the buyer/intermediary no later than the due date under the contract signed by both parties. This type of farming is often practiced by farmers where there is no certainty of payment for the harvest of produce, or by farmers who have access to large tracts of land and are able to invest time, effort and resources to fulfill large orders. There are many types of contract farming in India, such as: – The introduction of CF practices around the world has proven that the model has several advantages and disadvantages (Dev and Rao, 2005; Glover, 1987; Wang et al., 2014; Minot and Sawyer 2016; Barrett et al., 2012; Bellemare, 2012).