Which kind of crops are most suitable to be grown under contract farming?
(A) Grapes and Cotton
(B) Wheat and Rice
(C) Figs and Sugarcane
(D) Sugarcane and Wheat
(E) Figs and Oilseeds
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) and (E) only
(A) Grapes and Cotton Correct. Contract farming is very common in specialised items such as cut flowers, fruits like grapes, figs and pomegranates, cotton and oilseeds. Both grapes and cotton are such items.
(B) Wheat and Rice Incorrect. Wheat and rice are food grains. Contract farming of export-oriented products in fact diverts agricultural land away from food grain production.
(C) Figs and Sugarcane Incorrect. Figs are a specialised fruit grown under contract, but sugarcane is a bulk field crop rather than one of the specialised items (cut flowers, fruits, cotton and oilseeds) for which contract farming is very common. The pair fails as a whole.
(D) Sugarcane and Wheat Incorrect. Neither is a specialised item: wheat is a food grain and sugarcane a bulk field crop.
(E) Figs and Oilseeds Correct. Figs and oilseeds are both specialised items for which the company provides seeds, inputs and know-how and guarantees to buy the produce at a fixed price.
NCERT (2025-26): “4.6 Globalisation, Liberalisation, and Rural Society … For instance, in some regions such as Punjab and Karnataka, farmers enter into contracts with multinational companies (such as PepsiCo) to grow certain crops (such as tomatoes and potatoes), which the companies then buy from them for processing or export. In such ‘contract farming’ systems, the company identifies the crop to be grown, provides the seeds and other inputs, as well as the know-how and often also the working capital. In return, the farmer is assured of a market because the company guarantees that it will purchase the produce at a predetermined fixed price. Contract farming is very common now in the production of specialised items such as cut flowers, fruits such as grapes, figs and pomegranates, cotton and oilseeds. While contract farming appears to provide financial security to farmers, it can also lead to greater insecurity as farmers become dependent on these companies for their livelihoods. Contract farming of export-oriented products such as flowers and gherkins also means that agricultural land is diverted away from food grain production.…” |