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Demerits of contract agriculture

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Answer:

Demerits of contract farming:

1)1. While contract farming tends to guarantee a market, contractors keep prices very LOW in ORDER to maximise profit.

2)Farmers often don’t have an opportunity to speak to the final consumer. For instance, farmers PARTICIPATING in contract production of peas for export do not have access to the final consumers in foreign countries so that they GET FEEDBACK on how to improve.

3)Contract companies have the final say on quality and can reject ‘sub-standard’ commodities which they can allocate a lower grade.

Explanation:

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