Agricultural Economics Research Review
Year : 2012, Volume : 25, Issue : conf
First page : ( 560) Last page : ( 560)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Economics of Gherkin Contract Farming in Tamil Nadu

Ramanathan G.

Department of Agricultural Economics, Faculty of Agriculture, Annamalai University, Annamalainagar – 608 002, Tamil Nadu

Online published on 9 October, 2012.

Abstract

The study has assessed the economics of gherkin contract farming and has identified the factors influencing its success in Tamil Nadu by taking a sample of 80 farmers from 5 villages of Manapparai taluk of Tiruchirappalli district. Different cost concepts and linear probability model have been used for analyzing the data. The study has revealed that cost of production of gherkin per acre was 3.59, 3.71, 3.73 and 3.68 in small, medium, large and average farms, respectively. The benefit cost-ratio has been found quite high in all the farm-size, it being 2.34 in small, 2.25 in medium, 2.21 in large and 2.26 in average farms. It indicates high profitability of gherkin production in all the groups of farms. Invariably, the contract between farmers and the company in the study area was written and was undertaken in the first year itself. Education and net income from contract farming have been found influencing the success of contract farming significantly and positively. Extension efforts must be focused on generating awareness about the benefits of contract farming and also educating farmers about input management and sustainable agricultural practices for the success of contract farming. To monitor the activities of contract firms, government should take necessary steps to eliminate exploitation by the contracting firms.

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Keywords

Contract farming, gherkin, economics, Tamil Nadu.

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