A STUDY ON CONTRACT FARMING IN KUMAON DIVISION OF UTTARAKHAND
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Date
2023-02
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G. B. Pant University of Agriculture & Technology, Pantnagar-263145
Abstract
Agriculture is the backbone of Indian economy as 54.6 per cent of Indian population depends directly on
agriculture and allied activities.(Census 2011). Agriculture has been an integral part of different phases of human
civilization but its form and approaches have change over period. Like primitive agriculture that was basically
dependent on natural resources, gradually converted into modern agriculture as per the demand of changing scenario.
Subsistence agriculture now become an enterprise and moving towards business mode. Over the time innovative
approach is adopted in agriculture sector also, and contract farming was introduced that became blessing for those
farmers who were vulnerable to uncertainty and risk related to fluctuation in price, market risk, unavailability of
proper extension service and inappropriate and timely supply of farm inputs. A contract-farming is seen as a
promising alternative that obliges a firm to supply inputs, credit, or extension in exchange for an agreement that fixes
a price for the product and binds the farmer to follow a particular input and production method. Contract farming is
defined as a form of vertical coordination between producers and the contract farming companies where the company
directly influences the production decisions and exercises some control at the production point under the obligation of
purchasing certain quantity of produce at specific price from the producers. The quantity and price relate to delivery
of specific quality produce at designated location and for a period of time is pre-determined. Contract farming is a
viable option for farming as this state is facing problem of erratic climatic conditions, lack of local market, limited
input supply and improper transport facility add additional risk in produce supply and sale of produce at reasonable
price. Inappropriate infrastructural problem persists in hilly terrain without which it becomes tough to carry out
agricultural production and marketing in a profitable manner.
The present investigation entitled “A study on Contract farming in Kumaon Division of Uttarakhand”
was undertaken to study the socio-personal, economic, psychological, and communication characteristics of contract
farmers, attitude of farmers towards contract farming, satisfaction level of farmers towards extension services, impact
of contract farming, relationship between selected characteristics of contract farmers with impact of contract farming,
and constraints faced by farmers engaged in contract farming system. The study was conducted in Kumaon Division
of Uttarakhand.Two districts i.e.Udham Singh Nagar and Nainital were purposively selected. 200 farmers engaged in
contract farming in four blocks (two blocks from each district) were selected using Simple random sampling method.
The descriptive research design was used to meet the objectives of the study and data was collected through Pre-tested
interview schedule.
The findings of the study revealed that, maximum number of contract farmers belonged to middle aged
group(48.00%), majority of them were male (64.50%), had education up to intermediate level(43.50%). It was also
reported that majority of farmers had marginal land holding (64.50%), belonged tosmall area under contract farming
category (80.50%), and lower income group (91.50%), had medium information seeking behaviour (64.50%), low
mass media exposure (50.00%), and low level of social participation (91.00%), had medium level of scientific
orientation (77.50%), medium level of economic motivation (66.00%), had medium level of risk orientation (53.50%),
and medium decision making ability (88.00%), had more favourable attitude towards contract farming (52.50%), were
satisfied with the extension services provided under contract farming system (71.50%), and had medium level of
innovativeness (43.00%).
The results revealed that there was significant increase in production of crops such as Rice, Chicory,
Turmeric, Chilli, Ginger and Lemongrass after contract farming. Sold quantity of crops such as Rice, Chicory,
Turmeric, Chilli, Coriander, Garlic, Ginger and Lemongrass increased significantly after contract farming. It was also
found that farm income, net farm income, crop insurance, KCC, market information, subsidy availed, engagement in
agri-business activities, use of cold storage facility, health care, technical advice availed and training attended had
significantly increased after contract farming.
Regarding relationship of selected socio-economic, communication and psychological characteristics of
contract farmers with impact of contract farming, it was found social participation, innovativeness, scientific
orientation, risk orientation, and decision making ability were significantly associated with impact of contact farming.
Major constraints faced by the farmers under contract farming system were problem of insect, pest and diseases
(71.00%), scarcity of water for irrigation (67.50%) and scarcity of labour during peak periods (61.50%).
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Theses of Ph.D