Vol. 7, Special Issue 6 (2019)
Contract farming – A new approach for marketing
Author(s): Sahana S, Nanjappa D, Narendra VN and Chaithrashree J
Abstract: Liberalization and globalization has a significant influence on marketing of agriculture produce. This situation created a requirement for commercialization of the farming system. In India small holding of the farming acts as a hurdle for commercialization of agriculture. Along with commercial production marketing of the produce is also a great challenge. With respect to horticulture produce, which are of perishable nature with lesser shelf life, there is a need for specific market and market infrastructure within a time period. In this context contract farming is recognized as important aspect of agri-business. Contract farming is an agreement between the buyer and seller about supply of inputs and other element and buying the produce at pre decided price. Present study has been conducted by adopting case study method. Data has been collected by the farmer who was following contract farming in watermelon from last five years. After the detailed information about social and economic impact of contract farming it has been found that farmer has added up in his land holding from 7.00ac. to 11.27 ac. He bought additional 2.00 ac. under irrigation after following contract farming. As he was growing field crops now he switched over to commercial crops. His economic status has been improved from 21,000 per annum to 5.5 lakhs per annum. Apart from this his social status has been upgraded as he was treated as one of the contact farmer. Along with educational status of the family member has been improved. Now he has got capital in his hand by repaying his entire loan. Over all commercialization and contract farming has influence in improvement of social and economic status of the farmer and acts as a model farmer in his area.
Pages: 901-905 | 480 Views 59 Downloads
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How to cite this article:
Sahana S, Nanjappa D, Narendra VN and Chaithrashree J. Contract farming – A new approach for marketing. International Journal of Chemical Studies. 2019; 7(6): 901-905.
