The correct answer is: d) All of the above.
Contract farming is a system in which farmers agree to grow certain crops or raise certain livestock for a buyer, who agrees to purchase the produce at a pre-agreed price. This can help farmers to secure a market for their produce, which can be especially important in areas where there is a lot of competition from other farmers. It can also help to improve price stability, as farmers know that they will be paid a certain price for their produce, regardless of market fluctuations. Additionally, contract farming can help to facilitate quality standards, as buyers can specify the quality standards that they require and farmers can be sure that they will be paid a premium for meeting those standards.
In Bihar, the horticulture sector is a major contributor to the state’s economy. However, the sector faces a number of challenges, including lack of market access, price instability, and poor quality standards. Promoting contract farming and linking farmers to organized markets can help to address these challenges and improve the livelihoods of farmers in Bihar.
Here is a brief explanation of each option:
- Assuring market access: Contract farming can help to assure market access for farmers by providing them with a guaranteed buyer for their produce. This can be especially important in areas where there is a lot of competition from other farmers.
- Improving price stability: Contract farming can help to improve price stability for farmers by providing them with a pre-agreed price for their produce. This can help to protect farmers from the volatility of the market and ensure that they receive a fair price for their produce.
- Facilitating quality standards: Contract farming can help to facilitate quality standards by allowing buyers to specify the quality standards that they require. This can help to improve the quality of produce and ensure that farmers are paid a premium for meeting those standards.