Contract farming has been receiving increasing attention from agribusiness firms as well as the government for more than a decade now. While agribusiness firms view it as a tool for managing raw materials, the government considers it as an avenue to develop markets, transfer technology, provide inputs including credit, etc. to small farmers. A large number of agribusiness firms have undertaken contract farming for a number of agricultural and horticultural crops/produce. While some of them are working smoothly, others have experienced certain problems because of improper design or ineffective implementation. In some cases, the participating farmers are not happy and in some other cases, firms have had bad experience. With the multi-brand retail trade being opened to 51% FDI in late 2012 by the Government of India and the presence of wholesale cash and carry players including those with 100% FDI since the late 1990s, contract farming is going to become an even more relevant mechanism as large global supermarkets may like to procure quality farm produce directly from farmers under contracts to achieve quality and cost advantages in the absence of corporate farming option and poorly performing open markets for such produce. Already, domestic supermarkets have been using some variants of contract farming, besides direct purchase, in procuring fruits and vegetables from farmers for almost a decade now.