Contract Farming in Odisha: Prospects and Constraints

Contract farming is one of the illustrated examples of the impact of globalization and liberalized economic policy in the agriculture sector. While the farm sector is facing an identity crisis amidst growing dominance of the industrial sector, contract farming helped to create a new hope in this scenario. It established a link between the farm sector and the corporate sector too. This way it created new prospects for the agricultural sector, and added to the dignity of the farmer. However, the actual practice was often not so farmer-friendly. Rather it was an arrangement to best exploit the farmers’ lands in the interest of the contracting agency. Innocence and ignorance of the farmers,absence of a strong farmer-security mechanism, and tactfully drafted legal papers favoured the other side very much. And the result was quite obvious; farmers suffering in many ways, long-term socioeconomic and environmental threats perceived, and marginality of farmers getting increased.