The question of the role of the state in contract farming expansion has attracted a great deal of attention, with opinions divided on whether the state should promote it, disallow it or ignore it. In this chapter, we reflect on state role in contract farming—first focusing on the doctrines that undergird state role, and then to two aspects of policy: facilitation and promotion of contract farming on the one hand and regulation, on the other. We then focus specifically on the relationship of the Indian state with contract farming that illustrates the dilemmas and challenges of policy making by governments in developing countries.