Monopsonistic exploitation in contract farming: articulating a strategy for grower cooperation

Sashi Sivramkrishna and Amalendu Jyotishi
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Sashi Sivramkrishna: Foundation to Aid Industrial Recovery, Bangalore, India, Postal: Foundation to Aid Industrial Recovery, Bangalore, India
Amalendu Jyotishi: Ohio University-Christ College Academy for Management Education, Bangalore, India, Postal: Ohio University-Christ College Academy for Management Education, Bangalore, India

Journal of International Development, 2008, vol. 20, issue 3, 280-296

Abstract: Contract farming has been considered a new hope to instil dynamism in third world agriculture. However, there remains serious concern whether small peasants will be able to benefit from this system since buyers may often be a single large or at most, few large corporations, a typical case of monopsony. In this paper we question the basis of the fears that are often raised in the literature. A clear analytical approach to understanding the (economic) meaning of monopsony helps us articulate a strategy for grower cooperation that could effectively deal with monopsony power in contract farming systems. Copyright © 2007 John Wiley & Sons, Ltd.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:20:y:2008:i:3:p:280-296

DOI: 10.1002/jid.1411

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