Agricultural Diversification in Indian Punjab: An Assessment of Government Intervention Through Contract Farming

This article examines the role of the Indian Punjab government in addressing agricultural diversification through contract farming. It also analyses prospects of diversification for the Punjab state which suggest lack of policy effectiveness for diversification in terms of market institutions and prices that has failed to fetch better crop incomes for the diversified farm households. The analysis of the Punjab Contract Farming Act 2013 raises questions about the interventionist approach of the government. The insights from this article suggest that the government needs to strengthen infrastructure, marketing and pricing structure, and identify region-specific crops for diversification.This article examines the role of the Indian Punjab government in addressing agricultural diversification through contract farming. It also analyses prospects of diversification for the Punjab state which suggest lack of policy effectiveness for diversification in terms of market institutions and prices that has failed to fetch better crop incomes for the diversified farm households. The analysis of the Punjab Contract Farming Act 2013 raises questions about the interventionist approach of the government. The insights from this article suggest that the government needs to strengthen infrastructure, marketing and pricing structure, and identify region-specific crops for diversification.This article examines the role of the Indian Punjab government in addressing agricultural diversification through contract farming. It also analyses prospects of diversification for the Punjab state which suggest lack of policy effectiveness for diversification in terms of market institutions and prices that has failed to fetch better crop incomes for the diversified farm households. The analysis of the Punjab Contract Farming Act 2013 raises questions about the interventionist approach of the government. The insights from this article suggest that the government needs to strengthen infrastructure, marketing and pricing structure, and identify region-specific crops for diversification.