This study discusses how asset positions, cane cultivable practices and chain coordination mechanisms for sugar cane growers vary in Punjab (India). The study is based upon field surveys of cane farmers classified on the basis of cane cultivated area - Group I (below five acres), Group II (five to ten acres) and Group III (above ten acres). Across the three groups of cane growers little variation has been observed in their farm asset positions except for land size and cane cultivable practices. All cane growers enter into informal verbal contracts with several upstream chain partners to lease land, hire labour and purchase operational inputs. In contrast, they all enter into formal written contracts with their downstream chain partners i.e. sugar mills for cane disposal. Upward chain coordination ensures that farmers have sufficient land to achieve some economies of scale for the optimal utilization of complementary farm assets, timely availability of labour and timely availability of other operational inputs. However, owing to frequent and unexpected power cuts, farmers turn to diesel operated pump sets to ensure timely irrigation and open markets for the purchase of fertilizers because cooperative societies are not always able to ensure timely and adequate supplies. Downward chain coordination ensures timely cane disposal for farmers while regular and timely cane supplies to mills. However, cooperative sugar mills often fail to make timely cane payments to farmers. Thereupon, Group II and III sized cane farmers have a propensity to shift to private sugar mills for cane disposal and to divert some part of their land holdings to alternative field crops i.e., paddy/cotton. In contrast, Group I farmers shift to the cultivation of alternative crops.
