ABSTRACT
Contract farming in India has evolved to address problems such as low productivity, price risk, credit availability and market inclusion. This chapter analyses the technical efficiency of the contract and non-contract farms in Karnataka, Andhra Pradesh, Punjab and Haryana and studies its determinants. In the first step, Data Envelopment Analysis was used to estimate the technical efficiencies. In the second step, Tobit regression was used to examine the relationship between technical efficiency and various farm and farmer characteristics. The chapter concludes with the findings and policy suggestions that can be useful information to policymakers to promote the efficiency of farms.
