ECONOMICS OF CONTRACT FARMING IN VEGETABLES - A CASE OF BELGAUM DISTRICT
Loading...
Date
2002
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Agricultural Sciences, Dharwad
Abstract
Contract farming can be described as a half way house between independent farm production and corporate farming. The study was undertaken in Belgaum district of Karnataka. Two taluks viz., Belgaum and Bailhongal, 15 villages from these two taluks were selected where contract farming was practiced. All contract farmers and equal number of non-contract farmers were selected. Hence, the total sample size was 150. The study revealed that annual income, family size and education of the farmers classified them into contract farmer and non-contract farmer in potato, tomato and chilli. Written agreement was used in potato and chilli oral agreement was used in tomato. The total per acre cost of potato cultivation in contract and non-contract farming was Rs. 27,783.00 and Rs. 30,256.10 and net returns obtained were Rs. 13,231.61 and Rs. 17,063.90. The total per acre cost of tomato cultivation in contract and non-contract farming was Rs. 31,719.25 and Rs. 36,798.18 and net returns obtained were Rs. 50,136.66 and Rs. -6,916.68. The total per acre cost of chilli cultivation in contract and non-contract farming was Rs. 16,156.62 and Rs. 24,286.31 and net returns obtained were Rs. 41,443.38 and Rs. 33,583.69, respectively. In potato, contract farmer had a negative impact on profitability when compared to non-contract farmer as market price was higher than the contract price. In tomato and chilli, contract farmer had a positive impact on profitability when compared to non-contract farmer as contract price was higher than the market price. The regression coefficients of net returns from contract farming, land under contract, education of the contract farner and experience of the company were statistically significant and marketing cost was negatively significant. There were several problems faced by contract farmer and contract firm, which can be well handled with proper policy interventions.
Description
Keywords
null
Citation
No . of references 72