Q. 225.0( 1 Vote )

Explain contract

Answer :

The highlighting features of contract farming are –

The farmer enters into a contract with a company for growing a particular crop.

The seeds are provided by the company.

The knowhow as well as the working capital is also provided by the company.

The company assures the farmer that his produce will be bought at a predetermined price.

It is commonly practiced for special products like grapes, figs, pomegranates cotton etc.

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