Emerging Alternate Marketing Channels: It has been realised that if farmers directly sell their produce to consumers, it increases their incomes. Some examples of these channels are Apni Mandi (Punjab, Haryana and Rajasthan); Hadaspur Mandi (Pune); Rythu Bazars (vegetable and fruit markets in Andhra Pradesh and Telangana) and Uzhavar Sandies (farmers markets in Tamil Nadu). Further, several national and multinational fast food chains are increasingly entering into contracts/ alliances with farmers to encourage them to cultivate farm products (vegetable, fruits, etc.) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices. It is argued that such arrangements will help in reducing the price risks of farmers and would also expand the markets for farm products.

In the alternatives marketing channels farmers entering contracts with multinational fast food chain, this will avoid/reduce_______________.

Price Risk

The passage states that national and multinational fast food chains are entering into contracts with farmers to provide them with assured procurement of the produce at pre-decided prices. This means that the farmers will have a guaranteed market for their produce, and they will not have to worry about selling their produce at a low price.

Fire Risk, Flood Risk, and Insect Risk are all risks that farmers face when they are growing crops. However, these risks are not reduced by entering into contracts with fast food chains.