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Question
Mention the positive and negative aspects of the 'contract farming' system.
Solution
A contract between a farmer and a buyer of an agricultural product is known as contract farming.
Advantage:
- It guarantees increased higher-quality production.
- reduces marketing costs by ensuring a market for farmers' produce right at their door.
- provides even small-scale farmers with access to financial and technical marketing channels.
Disadvantage:
- Contract farming is criticized for favouring large landowners and being biased.
- Farm produce payments are delayed or reduced.
- Contract farming is not environmentally sustainable because it uses large quantities of fertilizers and pesticides.
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