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Can contract farming in organic basmati rice be a boon to smallholders? Evidence from India

Demand for organic basmati rice (OBR), both at home and abroad, coupled with policy reforms in India have given rise to contract farming (CF) production in that nation. OBR production, however, is highly susceptible to weather and pest risks. This study investigates the impact of smallholders’ perce...

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Main Authors: Mishra, Ashok K., Kumar, Anjani, Joshi, Pramod Kumar, D'Souza, Alwin, Tripathi, Gaurav
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2018
Subjects:
regression analysis
basmati rice
organic agriculture
sustainability
crop yield
agricultural prices
smallholders
production costs
contract farming
risk
Online Access:https://hdl.handle.net/10568/146529
Summary:Demand for organic basmati rice (OBR), both at home and abroad, coupled with policy reforms in India have given rise to contract farming (CF) production in that nation. OBR production, however, is highly susceptible to weather and pest risks. This study investigates the impact of smallholders’ perceived production risks on their adoption of CF in OBR farming. We also assess the impact of CF in OBR production on yields, prices received, and the livelihood of OBR producers. We use farm-level data from smallholder basmati rice farms in India and the endogenous switching regression method to account for heterogeneity.

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