Contract farming boosts income for some, but not all farmers equally.
Contract farming can have different effects on farmers' welfare. A study in Southern India looked at farmers growing gherkins, papaya, marigold, and broiler chickens. They found that participating in contract farming can increase profits for some farmers, especially in papaya and broiler sectors. However, the impact on income varies widely among farmers, even within the same commodity sector. This shows that while some farmers benefit from contract farming, others may not see the same positive effects.