Agricultural Economics Research Review
Year : 2012, Volume : 25, Issue : conf
First page : ( 563) Last page : ( 563)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Role of Contract Farming in Reducing Risks in Agribusiness

Waghmare M.N., Shendage P.N.

Department of Agricultural Economics, College of Agriculture, Pune, Maharashtra

Online published on 9 October, 2012.

Abstract

The paper has assessed ground level performance of contract farming and its impact on rural economy. For study, Baramati Agro Ltd (BAL) was selected purposively as contracting agency because of its successful contractual arrangements with farmers in the Pune district of Maharashtra. Eighty respondent farmers (40 contract and 40 non-contract) were selected randomly. The data were collected for the year 2009. In the study, price realization per kilogram has been observed to be higher for contract framers than non-contract farmers. The net income per bird has been found almost double in case of contract farmers compared to non-contract farmers. The output-input ratio has been worked out to be higher (1.14) in contract farmers than non-contract farmers (1.07). A lower yield uncertainty ratio has been observed in case of contract farmers due to supply of improved quality of breed supplemented by constant supervision monitoring and guidance rendered by the firm.

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Keywords

Contract farming, agribusiness, broiler farming, Maharashtra.

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