India, March 18 -- Contract farming, often touted as a solution to increase productivity and efficiency of smallholder farmers, was found to be unfair and less profitable for them, according to a new study.

The research done on small broiler contact farmers and private companies in Punjab revealed that contracting agencies took away the larger chunk of the market price of the broilers, making the trade less profitable than independent (non-contract) farming.

The paper, released on March 1, 2025, was based on a primary field survey of 50 broiler contract farmers of Venky's India (a subsidiary of Venkateshwara Hatcheries Pvt Ltd) and 50 non-contract farmers in Bathinda and Mansa districts of Punjab in 2019-20.

The average annual net inc...