Contract farming in medicinal plants : a case of coleus in Karnataka
Loading...
Date
2009
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
UAS, Dharwad
Abstract
Contract farming can be described as a half way house between independent farm
production and corporate farming. Contract farming involves a contractual relationship
between farmers and a central processing or exporting units/firms. These units purchases
produce from contract farmers under the agreed terms of contract. Coleus is one of the most
potential medicinal crops of the future, as its pharmacopieal properties have been discovered
recently. Its tuberous roots are found to be rich source of forskolin which is being developed
as a drug for hypertension, glaucoma, asthama, congestive heart failures, certain types of
cancer, preventing hair graying and restoring grey hairs to normal colour. The study was
undertaken in two districts Belgaum and Bagalkot, where contract farming is practice. Two
firms involved in contract farming in coleus semi-Labs Private Limited and Natural remedies
for forskohlin oil extraction were selected and compared. Sample size was 20 for each firm
and total sample size was 40.
The study revealed that family size and young age coupled with better education
(Semi-Lab 65% and Natural Remedies 70%) increased their farm income by adopting
commercial agriculture. The total cost per ha was Rs. 28,800 and Rs. 28,634 with respect to
Semi-Lab and Natural Remedies. Net returns were Rs. 35,200 and Rs. 38,866, respectively.
Semi-Lab has written agreement, but Natural Remedies has both pre-fixed prices were
different Rs. 40 per kg in Semi-Lab and Rs. 45 per kg in Natural Remedies. Both the
companies supplied input but not fertilizers. It was found that farmers were much using FYM
in both companies. Buy-back system was the major factor for farmers to go for contract
farming. There were several problems faced by companies and farmers, which can be well
handled with proper policy implications.