Publication Type:



Gujarat Institute of Development Research, Volume 20, Issue 3 (2005)


Contract farming has been considered a new hope to instil dynamism in third world agriculture. However, there remains serious concern whether small peasants will be able to benefit from this system since buyers may often be a single large or at most, few large corporations, a typical case of monopsony. In this paper we question the basis of the fears that are often raised in the literature. A clear analytical approach to understanding the (economic) meaning of monopsony helps us articulate a strategy for grower cooperation that could effectively deal with monopsony power in contract farming systems.

Cite this Research Publication

S. Sivramkrishna and Dr. Amalendu Jyotishi, Monopsonistic exploitation in contract farming: articulating a strategy for grower cooperation, vol. 20, no. 3. Gujarat Institute of Development Research, 2005.