| Abstract |
Agribusiness companies face several problems in obtaining raw materials: inadequate quantity, poor quality, high price, untimely supply, etc. Some of these problems can be overcome by the companies themselves undertaking production; however, there are many legal and organizational obstacles. It is in this context that contract farming has emerged as an option.
This study, extension of an earlier study, examines contract farming arrangements for some medicinal plants and organic products. The objectives of the study are to: examine the rationale behind contract farming of these crops; understand the relationship between farmers and firms under contract farming; and suggest policy guidelines for facilitating smooth functioning of the arrangement.
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