Debates about public expenditure in the agricultural sector have reopened in many developing and emerging economies because of high budget deficits and changes in public opinion. As a result, agricultural policy in many of these countries is beginning to take a more market-oriented approach to agrarian problems, most notably through the introduction of contract farming. This book explores the policy issues around contract farming and its transformative potential and addresses the lack of empirical research on this topic by focusing on South Asia: principally India, Bangladesh and Nepal.

The book first addresses the effects of contract farming (vertical coordination) on productivity, food security indicators (yield, consumption expenditures, prices), employment and input usage. Then it draws lessons from the South Asian case studies on the impact of institutional changes, like contract farming, on income and food security of smallholder households. The core of the book includes case study chapters on several commodities that are produced under contract farming, including vegetables and fisheries in Bangladesh, low-value crops in Nepal and coffee in India. Other chapters also explore contracts, storage, input usage and technical efficiency in these cases.

This book serves as an essential guide to academics, researchers, students, legislative liaisons and think tank groups interested in agrarian issues, agricultural economics and agricultural policy in emerging economies and particularly in South Asia.

part I|126 pages

Understanding the agricultural sector, transformation, value chains and contract farming

chapter 2|17 pages

Agriculture in South Asia

Trends and prospects

chapter 3|19 pages

Agriculture on the rise in Bangladesh

The future role of value chains

chapter 5|30 pages

The agricultural sector in Nepal

Scope of improvement and value chains

chapter 7|21 pages

Role of transaction costs in modern food retail chains

Empirical evidence from India

part II|117 pages

Case studies in contract farming

chapter 9|15 pages

Formal versus informal milk value chains in Bangladesh

Trade-offs between price and food safety

chapter 10|10 pages

Durum wheat value chain in Pakistan

Scanning the current picture and exploring future potential

chapter 11|18 pages

Contract farming and farm performance

Evidence from brinjal cultivation in Bangladesh

chapter 14|22 pages

Moving toward sustainability

An evaluation of Indian coffee in the global food value chain

part III|140 pages

Contract farming, storage and technical efficiency

chapter 16|13 pages

Harvesting the booming potential

The case of the maize value chain in Pakistan

chapter 21|17 pages

Who quits and who sustains participation in a supermarket supply chain?

An insight from the Aditya Birla More supply chain