CONTRACT FARMING IN HYBRID VEGETABLE SEED PRODUCTION IN NORTHERN KARNATAKA - AN ECONOMIC ANALYSIS
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Date
2006-12-30
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University of Agricultural Sciences GKVK, Banglore
Abstract
Contract farming can be described as half-way house between farm
production and corporate farming. It involves contractual relation between
farmers and central processing or exporting unit/firms.
Seed is a vital input and dynamic instrument for increasing
agricultural production. The study analyzed the costs, returns, production
efficiency and modus operandi of private seed firms in hybrid vegetable seed
producing taluks viz., Ranebennur, Hirekerur and Byadagi in Haveri district
of Karnataka
The primary data were collected (during 2004-05) from 120 seed
growers comprising 30 each for tomato, brinjal, okra and ridge gourd from
private seed firms. The data subjected to Cobb-Douglas and frontier
production function analysis besides tabular presentation.
The results revealed per acre seed production cost estimated to be
Rs. 54893, Rs. 36688, Rs. 29288 and Rs. 35868 in tomato, brinjal, okra and
ridge gourd, respectively. The per acre yields of seed obtained were 78, 302,
298 and 140 kgs in tomato, brinjal, okra and ridge gourd seed growers
group.
The marginal productivity analysis indicated that seed, human labour,
fertilizer and micronutrients, plant protection chemicals, irrigation, staking
sticks and gunny thread in tomato, seeds, human labour, bullock and
tractor charges, FYM in brinjal, FYM, bullock and tractor charges, human
labour, fertilizers and micronutrients in okra and FYM, irrigation, fertilizer
and micronutrients, seeds, bullock and tractor charges in ridge gourd were
under utilized.
The mean technical efficiency index was 79, 76, 72 and 73 for tomato,
brinjal, okra and ridge gourd seed growers, respectively.
Written agreement was used in contract. The technical aspect of
agreement was drafted in short, simple terms, clarifying the responsibilities
of farmers and firms.
Availability of skilled labour, adequate and timely capital,
non-existence of crop insurance were the problems confronting the seed
growers.
Fixing scale of finance, crop insurance and government intervention
were the suggestions.
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