Monopsonistic exploitation in contract farming: Articulating a strategy for grower cooperation
Agriculture; Asset specificity and bargaining power; Contract farming; India; Monopsonistic exploitation; Small peasant
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.
Journal of International Development, Vol-20, No. 3, pp. 280-296.
https://doi.org/10.1002/jid.1411 https://www.scopus.com/inward/record.uri?eid=2-s2.0-43849108253&doi=10.1002%2fjid.1411&partnerID=40&md5=b78b66b1e8ab9c9323f53af20e450d79
Sivramkrishna S., Foundation to Aid Industrial Recovery, Richmond Town, Bangalore 560 025, No. 11, Prime Street, India; Jyotishi A., Ohio University-Christ College Academy for Management Education, Bangalore, India