Linking small farmers with modern agri-business firms through contract farming is viewed as one of the several ways to achieve crop diversification and enhance farmers’ income, besides bringing spill-over effects of such interventions for other local stakeholders like farm workers. This article examines the role of contract farming in crop diversification and employment generation in the context of Indian Punjab. Based on a sample of 50 contract farmers and 50 non-contract farmers for three firms each, the study shows that contract farming brings crop diversification and generates farm labour employment, particularly for women, due to the high value and labour-intensive nature of crops being grown under such arrangements. But, there exists a gender gap in wages and gendering of tasks, which demand policy and corporate attention besides regulatory oversight to achieve more equitable and pro-poor impact of contract farming.
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