Skip to main content

Advertisement

SpringerLink
Log in

Potato and Potato Seed Production Under Contract Farming—a Study from Empirical Evidence of Case Studies

  • Published:
Potato Research Aims and scope Submit manuscript

Abstract

India is an agrarian country, and 70% of the rural population is engaged in agriculture for their livelihood. Consumption of potato is being part of the daily routine for many consumers in India and world. The area, production, and productivity of potato in India has been increasing, and export of potato also has been increasing. The production of quality potato is still an issue faced by the Indian farmers due to lack of credit to purchase quality seed tubers, fertilizers, pesticides and so on. These issues are tackled through contract farming which provides the credit, fertilizer, quality seed tubers, harvesting support and technical support to the farmers. PepsiCo is one of the biggest companies involved in contract farming in India for potato production and enhances the quality of potato production for their processing unit which provides quality of product to the consumers as well as good remuneration to the farmers through contract farming. Small and marginal farmers involve in contract farming to meet the global demand. Nowadays, potato production under contract farming has been increasing but violation of the contract by the companies is also increasing. Intervention of the government is required to monitor the contract between potato farmers and companies to avoid conflicts and violations. The involvement of the government in contract farming enhances the quality of the product for the consumers as well as the quality of lifestyle for the farmers through the availability of fair remuneration for their potato production.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Abebe GK, Bijman J, Pascucci S, Omta O (2013) Adoption of improved potato varieties in Ethiopia: the role of agricultural knowledge and innovation system and smallholder farmers’ quality assessment. Agric Syst 122:22–32

    Article  Google Scholar 

  • Anonymous (2022a) Area, production and productivity of potato in India. [Retrieved Online] https://www.indiastat.com/data/agriculture/potato/data-year/all-years. Accessed on 15-10-2023

  • Anonymous (2022b) Indian potato export market data. [Retrieved Online] https://www.eximpedia.app/blog/indian-potato-export-market-data. Accessed on 17–10–2023

  • Anonymous (2023) Case study of HyFun foods. [Retrieved Online] https://www.hyfunfoods.com/exports/#:~:text=HyFun%20is%20the%20leading%20exporter,vegetarian%20frozen%20food%20from%20India. Accessed on 22–10–2023

  • Anonymous (2023a) Global potato production. [Retrieved Online] https://www.statista.com/statistics/382174/global-potato-production. Accessed on 18–10–2023

  • Bairwa A, Sood S, Bhardwaj V, Rawat S, Tamanna T, Siddappa S, Kumar V (2023) Identification of genes governing resistance to PCN (Globodera rostochiensis) through transcriptome analysis in Solanum Tuberosum . Funct Integr Genomics 23(3):242

    Article  PubMed  CAS  Google Scholar 

  • Bauman Z (2000) Social issues of law and order. Br J Criminol 40(2):205–221

    Article  Google Scholar 

  • Bell C (1989) The choice of tenancy contract. The Balance between Industry and Agriculture in Economic Development: Volume 4: Social Effects. Palgrave Macmillan UK, London, pp 161–178

    Chapter  Google Scholar 

  • Bellemare MF, Bloem JR (2018) Does contract farming improve welfare? A review. World Dev 112:259–271

    Article  Google Scholar 

  • Bhattacharyya D (2004) West Bengal: permanent incumbency and political stability. Econ Polit Wkly 39(51):5477–5483

    Google Scholar 

  • Bolakhe K, Dhakal KH, Dahal R (2022) Economic analysis of potato basic seed production under contract farming in Kavrepalanchok. Nepal International Journal of Agricultural Economics 7(1):4–10

    Article  Google Scholar 

  • Dev SM, Rao NC (2005) Food processing and contract farming in Andhra Pradesh: a small farmer perspective. Econ Polit Wkly 40(26):2705–2713

    Google Scholar 

  • Dileep BK, Grover RK, Rai KN (2002) Contract farming in tomato: an economic analysis. Indian J Agric Econ 57(2):197–210

    Google Scholar 

  • Dorward A (2001) The effects of transaction costs, power and risk on contractual arrangements: a conceptual framework for quantitative analysis. J Agric Econ 52(2):59–73

    Article  Google Scholar 

  • Eaton C, Shepherd A. (2001) Contract farming: partnerships for growth (No. 145). FAO Agericultural Services Bulletin. Food & Agriculture Organization

  • Glover D, Kusterer K (2016) Small farmers, big business: contract farming and rural development. Springer

    Google Scholar 

  • Gupta VK, Bhardwaj V, Luthra SK, Singh B, Kumar D, Chaudhary B, Chakrabarti SK (2023) Kufri kiran: a new heat tolerant potato variety. Potato Journal 50(1):45–54

    Google Scholar 

  • Khan MF, Nakano Y, Kurosaki T (2019) Impact of contract farming on land productivity and income of maize and potato growers in Pakistan. Food Policy 85:28–39

    Article  Google Scholar 

  • Kumar S, Chakarvarty K, Chand P, Dabas JPS (2007) Mode of operation and performance of contract farming of cottonseed in Haryana. Agric Econ Res Rev 20(1):99–116

    Google Scholar 

  • Kumar A, Singh DK, Kumar P (2007) Performance of rural credit and factors affecting the choice of credit sources. Indian J Agric Econ 62(3):297–313

    Google Scholar 

  • Kumar B, Mistry NC, Singh B, Gandhi, CP. (2009) Indian horticulture database 2008. National Horticulture Board, Ministry of Agriculture, Government of India

  • Kumar MS, Lad YA, Mahera AB (2022) Trend analysis of area, production and productivity of minor millets in India. Biological Forum – An International Journal 14(2):14–18

    Google Scholar 

  • Kumar P (2006) Contract farming through agribusiness firms and state corporation: a case study in Punjab. Econ Polit Wkly 41(52):5367–5375

    Google Scholar 

  • Little P (1994) Living under contract: contract farming and agrarian transformation in Sub-Saharan Africa. In: Little P, Watts M (eds) Contract farming and the development question. University of Wisconsin Press, pp 216–247

    Google Scholar 

  • Mishra BS (2010) Contract farming of potatoes: an attempt to include poor farmers in the value Chain. Inclusive Value Chains: A Pathway out of Poverty 4:97

    Google Scholar 

  • Nagaraj N, Chandrakanth MG, Chengappa PG, Roopa HS, Chandakavate PM (2008) Contract farming and its implications for input-supply, linkages between markets and farmers in Karnataka. Agricultural Economics Research Review 21:307–316

    Google Scholar 

  • Narayanan S. (2011) Contract farming as frictional equilibria: a theoretical perspective with empirical excursions in India [Doctoral dissertation, Cornell University]

  • Pandit A, Chandran KP (2011) Growth of potato production in India: a non-parametric analysis of time series data. Potato Journal 38(1):32–40

    Google Scholar 

  • Pandit A, Lal B, Rana RK (2015) An assessment of potato contract farming in West Bengal state, India. Potato Res 58:1–14

    Article  Google Scholar 

  • Punjabi M. (2015) The potato supply chain to PepsiCo’s Frito Lay. Food and Agriculture Organization of the United Nations (FAO)

  • Rajeswari K, Kartheeswari S (2011) From the margin to the centre: a perspective on private players in general insurance. IUP Journal of Risk & Insurance 8(2):50–65

    Google Scholar 

  • Rana RK (2011) The Indian potato-processing industry: global comparison and business prospects. Outlook Agric 40(3):237–243

    Article  Google Scholar 

  • Simmons P, Winters P, Patrick I (2005) An analysis of contract farming in East Java, Bali, and Lombok, Indonesia. Agric Econ 33:513–525

    Article  Google Scholar 

  • Simmons PR (2003) Contract farming and village organisations: three case-studies from Indonesia. In Cooperatives: Issues and trends in developing countries. Australian Centre for International Agricultural Research (ACIAR), pp 69–77

    Google Scholar 

  • Singh S (2002) Contracting out solutions: political economy of contract farming in the Indian Punjab. World Dev 30(9):1621–1638

    Article  Google Scholar 

  • Singh S (2003) Contract farming in India: Impacts on women and child workers. International Institute for Environment and Development, London, pp 1–25

    Google Scholar 

  • Singh S (2005) Contract farming system in Thailand. Econ Polit Wkly 40(53):5578–5586

    Google Scholar 

  • Swain BB (2011) Contract farming in Andhra Pradesh: a case of rice seed and gherkin cultivation. Econ Pol Wkly 46(42):60–68

    Google Scholar 

  • Tripathi RS, Singh R, Singh S (2005) Contract farming in potato production: an alternative for managing risk and uncertainty. Agric Econ Res Rev 18:47–60

    Google Scholar 

  • Vicol M (2017) Is contract farming an inclusive alternative to land grabbing? The case of potato contract farming in Maharashtra, India. Geoforum 85:157–166

    Article  Google Scholar 

  • Williamson OE (1979) Transaction-cost economics: the governance of contractual relations. J Law Econ 22(2):233–261

    Article  Google Scholar 

  • Zaheer K, Akhtar MH (2016) Potato production, usage, and nutrition—a review. Crit Rev Food Sci Nutr 56(5):711–721

    Article  PubMed  CAS  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. IABMI, Anand Agricultural University, Anand, Gujarat, India

    Sathish Kumar M

  2. College of Horticulture, Anand Agricultural University, Anand, Gujarat, India

    Prity Kumari

  3. International Maize and Wheat Improvement Center (CIMMYT), Hyderabad, Telangana, India

    Sherin Maria

  4. Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu, India

    Teena Lakshmi B

Authors
  1. Sathish Kumar M
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Prity Kumari
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sherin Maria
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Teena Lakshmi B
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sathish Kumar M.

Ethics declarations

Conflict of Interest

The authors declare no competing interests.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

M, S.K., Kumari, P., Maria, S. et al. Potato and Potato Seed Production Under Contract Farming—a Study from Empirical Evidence of Case Studies. Potato Res. (2024). https://doi.org/10.1007/s11540-023-09675-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s11540-023-09675-z

Keywords

Search

Navigation