Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal
Growing inequality has become an important concern in many countries. One of the ways that inequality is perpetuated is through differential market access across regions. This research deals with one of the primary determinants of regional inequality manifested in terms of market access. Nepal is on...
| Autores principales: | , , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2016
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/146415 |
| _version_ | 1855530294617047040 |
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| author | Kumar, Anjani Roy, Devesh Trapathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad |
| author_browse | Adhikari, Rajendra Prasad Joshi, Pramod Kumar Kumar, Anjani Roy, Devesh Trapathi, Gaurav |
| author_facet | Kumar, Anjani Roy, Devesh Trapathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad |
| author_sort | Kumar, Anjani |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Growing inequality has become an important concern in many countries. One of the ways that inequality is perpetuated is through differential market access across regions. This research deals with one of the primary determinants of regional inequality manifested in terms of market access. Nepal is one country where hierarchical geography leads to regional inequality. Differential market access can cause as well as accentuate inequality among farmers. Coordination arrangements such as contract farming can improve outcomes for the farmers and integrators on the one hand, but on the other hand it can accentuate inequality if only some regions benefit from it. With this background, in this paper we study the case of contract farming for exports with farmers in remote hilly areas of Nepal. The prospect for contract farming in such areas with accessibility issues owing to underdeveloped markets and lack of amenities is ambiguous. On the one hand, contractors in these areas find it difficult to build links, particularly when final consumers have quality and safety requirements. On the other hand, remoteness can make the contracts more sustainable if the agroecology offers product-specific quality advantages and, more important, if there is a lack of side-selling opportunities. At the same time, concerns remain about buyers’ monopsonistic powers when remotely located small farmers do not have outside options. This study hence quantifies the benefits of contract farming on remotely located farmers’ income and compliance with food safety measures. Results show that contract farming is significantly more profitable (offering a 58 percent greater net income) than independent production, the main pathway being higher price realization, along with training on practices and provision of quality seeds. |
| format | Artículo preliminar |
| id | CGSpace146415 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1464152025-11-06T06:44:06Z Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal Kumar, Anjani Roy, Devesh Trapathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad income agricultural policies food safety smallholders market access ginger contract farming Growing inequality has become an important concern in many countries. One of the ways that inequality is perpetuated is through differential market access across regions. This research deals with one of the primary determinants of regional inequality manifested in terms of market access. Nepal is one country where hierarchical geography leads to regional inequality. Differential market access can cause as well as accentuate inequality among farmers. Coordination arrangements such as contract farming can improve outcomes for the farmers and integrators on the one hand, but on the other hand it can accentuate inequality if only some regions benefit from it. With this background, in this paper we study the case of contract farming for exports with farmers in remote hilly areas of Nepal. The prospect for contract farming in such areas with accessibility issues owing to underdeveloped markets and lack of amenities is ambiguous. On the one hand, contractors in these areas find it difficult to build links, particularly when final consumers have quality and safety requirements. On the other hand, remoteness can make the contracts more sustainable if the agroecology offers product-specific quality advantages and, more important, if there is a lack of side-selling opportunities. At the same time, concerns remain about buyers’ monopsonistic powers when remotely located small farmers do not have outside options. This study hence quantifies the benefits of contract farming on remotely located farmers’ income and compliance with food safety measures. Results show that contract farming is significantly more profitable (offering a 58 percent greater net income) than independent production, the main pathway being higher price realization, along with training on practices and provision of quality seeds. 2016-04-20 2024-06-21T09:06:59Z 2024-06-21T09:06:59Z Working Paper https://hdl.handle.net/10568/146415 en https://hdl.handle.net/10568/147922 https://hdl.handle.net/10568/160255 https://hdl.handle.net/10568/160711 https://doi.org/10.2499/p15738coll2.134431 Open Access application/pdf International Food Policy Research Institute Kumar, Anjani; Roy, Devesh; Trapathi, Gaurav; Joshi, Pramod Kumar; and Adhikari, Rajendra Prasad. 2016. Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal. IFPRI Discussion Paper 1524. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146415 |
| spellingShingle | income agricultural policies food safety smallholders market access ginger contract farming Kumar, Anjani Roy, Devesh Trapathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal |
| title | Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal |
| title_full | Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal |
| title_fullStr | Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal |
| title_full_unstemmed | Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal |
| title_short | Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal |
| title_sort | can contract farming increase farmers income and enhance adoption of food safety practices evidence from remote areas of nepal |
| topic | income agricultural policies food safety smallholders market access ginger contract farming |
| url | https://hdl.handle.net/10568/146415 |
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