Contract farming and supermarket procurement arrangements are two supply chain arrangements that are gaining ground amid active debate in India. Recent experience in India indicates that contract farming and supermarket procurement approaches will have to involve small-scale farmers in the medium term, because the farm structure obliges them to do so.
And the ubiquitous consulting firms around the world can be relied upon to spread the word of worthwhile advances in risk techniques. Still, the individual bank in each country must face the proper incentives to keep up with the most cost-effective risk techniques. Lax supervisory practices -- or, worse, government support of banks with poor risk practices -- do not provide these proper incentives.