. Indian agriculture is under policy reforms. One of the issues it faces is that of lack of viability of smallholdings and lack of international competitiveness of its produce.
In this regard new initiatives of reorganizing the production system are being attempted in the form of contract and corporate farming. Corporate farming is a term that describes the business of agriculture, specifically, what is seen by some as the practices of would-be mega corporations involved in food production on a very large scale. In India the National Agricultural Policy (NAP) of Govt. of India announced in 2000 envisaged that “Private sector participation in Agriculture shall be promoted through Contract Farming and Land-leasing arrangements (Corporate Farming) to allow accelerated technology transfer, capital flow and assured markets for crop production. This is a system for the production and supply of agricultural / horticultural produce under forward contracts between producer / supplier and buyers. Essential to this is the commitment of the producer/seller to provide an agricultural/horticultural commodity of a certain type, at a specified time and a price and in the quantity and quality required by a known and committed buyer. There are various reasons to introduce corporate farming e.g. Consolidation of small farm lands into larger, land holdings Increase in agricultural productivity, Introduction of value added products etc.
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