A COMPARATIVE STUDY OF POTATO FARMERS’EARNINGS IN CONTRACT FARMING AND OPEN MARKET OPERATION
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Authors
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Abhijit Das
Assistant Professor, Department of Agricultural Economics and Extension School of Agriculture, Lovely Professional University Phagwara, Punjab 144 411, India
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Antonio Richard
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Debjani Das
Keywords:
Contract farming, Farmers’ earnings, Market price, Open-market sales, Sustainable agricultureAbstract
Contract farming has gained attention as a market mechanism to stabilize farm incomes
and reduce risks, yet its effectiveness remains debated. This study examines the economic differences
between contract and open-market potato farmers in Punjab, focusing on profitability, yield, and
market dynamics. Using primary data collected over two years, the analysis applies Propensity Score
Matching (PSM) and Difference-in-Differences (DID) to assess financial outcomes. The findings
indicate that while contract farming offers stability and input support, open-market sales may
provide higher price flexibility. Policy recommendations emphasize the need for balanced contract
terms, better price transparency, and institutional support to enhance farmers’ economic benefits.
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