PERCEIVED SWAYS OF CONTRACT FARMING ON EMPLOYMENT GENERATION AND POVERTY ALLEVIATION

This study examines the relationship between the perceived sways of contract farming on employment generation and poverty reduction among smallholders, focusing on socio-demographic factors using Path Analysis. Conducted in the Cooch Behar II block of West Bengal’s Cooch Behar district, this research followed an ex-post-facto research design. This cross-sectional study was carried out in the northern district due to the extensive socio-cultural milieu of contract farming of potatoes and other crops. A purposive, multistage random sampling method was used, with 100 contract farmers interviewed from ten selected villages between January and April 2023. Data were collected via personal interviews tabulated in MS Excel and analysed using OPSTAT. Results indicate that “Contract Farming Experience” (X04) had the strongest direct positive effect (0.483) on the dependent variable, while “Family Annual Expenditure” (X06) had the smallest direct effect (-0.334). Among the 19 variables studied, only two- “Contract Farming Experience” (X04) and “Communication Skills” (X10)-showed significant effects on employment and poverty outcomes, at 1% and 5% significance levels, respectively. The analysis also revealed that “Family Annual Expenditure” (X06) exerted the highest indirect effect (0.41), while the variable “Economically Active Member” (X08) had the lowest (-0.133). Further, seven substantial indirect effects were mediated through “Communication Skills” (X10), five through “Family Annual Income” (X5), with two indirect influences from “Management Orientation” (X19), “Contract Farming Experience” (X4), and one through “Age” (X1). These findings underscore the role of experience and communication skills in influencing contract farming outcomes for smallholders.