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The globalization of Indian agriculture in recent years resulted in the need for the production of export-oriented quality products having comparative advantage. In the context of internal developments i.e dismantling of system of quantitative restrictions by WTO, contract farming could be one of the best solutions which may decrease the polarization of rich and poor and thus encourage Indian farmers to compete with the very large, rich and highly indirect subsidized western farmers. Contract farming can indeed be a vehicle for the modernization of agriculture in India. It can be a means to bring about a market focus to Indian farming. The study is also significant due to the involvement of government as well as offering sufficient margin of benefit for under taking farming on a PPP mode. The study will offer a valid modus operandi and logical-frame work where the parties involved would be in a win-win situation. Last but not the least, the study will be a very good analytical source of information for companies planning for CF, financial institutions aiming at funding such programmes, policy makers at government and especially NABARD as well as the academicians and researchers.