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| Contract farming seems to be the new buzzword in the farm sector. Since agro-based companies are barred from taking up crop cultivation on their own, contract farming seems to be the best option for them to get their raw materials custom-produced through farmers. |
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| It is essentially a contractual relationship between the producers of farm products and their users (processors, exporters or traders) for the sale and purchase of agricultural produce outside the regular marketing channels. |
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This contract, oral or written, can be either directly between the farmer and the company or through some middle agency like a farmers
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