Agricultural Economics Research Review
Year : 2012, Volume : 25, Issue : conf
First page : ( 557) Last page : ( 557)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Contract Farming System in Barley Production in the State of Rajasthan

Ram Sita, Kumawat R. C.

Department of Agricultural Economics, SKN College of Agriculture, S K Rajasthan Agricultural University, Bikaner Campus, Jobner – 334 006, Rajasthan

Online published on 9 October, 2012.

Abstract

The functioning of a contract farming system for production of barley in Rajasthan has been reported. The system is operating in five districts of the state through a net work of 15 centres of SAB Millar India Pvt. Ltd. Out of these 15 centres, three centres were selected randomly for study. A separate list of all the villages adopting contract farming and falling under these three selected centres was prepared and then nine villages were selected randomly. From these villages, a sample of 117 respondents who had entered into contract with the firm was selected randomly and an equal number of non-contract farmers were also selected to assess the effect of contract farming on costs and returns structure and attitude towards contract farming system. The study has revealed that all types of costs and returns/incomes, viz. gross income and net returns were higher on contract than non-contract farms. The inputs like seeds and technical advice were provided by the contracting firm through their centres at farmers’ fields. The study has revealed that farmers have a favourable attitude towards contract farming. They opined that the contracting firm provided a better access to modern inputs and improved technology and encouraged quality production. Consequently, the net income of contract farmers was more than of non-contract farmers in the state.

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Keywords

Contract farming, barley, Rajasthan.

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