Land Allocation Choice in Both Contract and Non-Contract Farming: A Study of Potato Growers in West Bengal, India

Abstract

This paper analyses how farmers to take decision to allocate and use their lands for potato production when both contract and non-contract farming options are available in West Bengal. We used a primary data collected from 327 potato producing households in Bankura and Bardhaman districts of West Bengal. We used generalized least squares fixed effect model in the empirical analysis. We observed that imposed restriction of seed supply limits the choice of both potato farming and non-potato farming. The benefits from contract farming are not accrued by the farmers who are mainly small and marginal landholders. They are also in a moment of ambiguity to choice their land use under non-potato cultivation. The choice of the farmers, therefore, remains constrained. This uncertainty can be overcome only through effective land use planning and institutional intervention.