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Management of contract farming in marigold (Tagetes erecta L.) production

KrishiKosh

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Title Management of contract farming in marigold (Tagetes erecta L.) production
 
Creator G.Narayanaswamy
 
Contributor Basavaraj Banakar
 
Subject Agribusiness Management
 
Description Contract farming can be described as a half way house between independent farm
production and corporate farming. Contract farming involves a contractual relationship
between farmers and a central processing or exporting units/firms. These units purchases
produce from contract farmers under the agreed terms of contract. Marigold ranks first among
the loose flowers. Today there is huge demand for natural colour of marigold in the
international market. Marigold is the important source for natural carotenoid pigment for
poultry feed. The pigment is added to intensify the yellow orange colour of egg yolk by
adding in the poultry feed. Apart from the poultry industry also used in textile industries. The
study was under taken in three districts Kolar, Davangere and Haveri where the pigmentextracting
firms are located and contract farming in practice. Two firms involved in contract
farming in marigold A. V. Thomas Natural Products Limited (AVT) and Agro-Biochemical
India Limited for color extraction were selected and compared. Sample size was 40 for each
firm and total sample size was 80.
The study revealed that family size and young age coupled with better education
(ABC 80% and AVT 6.25%) increased their farm income by adopting commercial
agriculture. The total cost/ha was Rs.13833.17 and Rs.13295.90 with respect to AVT and
ABC. Net returns were Rs.11079.83 and Rs.8611.90 respectively.
AVT has written agreement, but ABC doesn’t have. Prefixed prices were different,
Rs.2.50/kg in AVT and Rs.2.20/kg in ABC. Both the companies supplied inputs but ABC
does not supply fertilizers. It was found that farmers were not using full quota of fertilizers
exclusively to marigold in ABC contract farming. Buyback system was the major factor for
farmers to go for contract farming. There were several problems faced by the both the
companies, which can be well handled with proper policy implications.
 
Date 2016-08-09T09:17:01Z
2016-08-09T09:17:01Z
2006
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/71649
 
Format application/pdf
 
Publisher UAS, Dharwad