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Economic Efficiency of Contract Farming Models in Medicinal Plants - An Analysis

KrishiKosh

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Title Economic Efficiency of Contract Farming Models in Medicinal Plants - An Analysis
 
Creator Jagadeesh N.P.
 
Contributor J.S. Sonnad
 
Subject Agribusiness Management
 
Description Contract farming can be structured in a variety of ways depending on the crop,
the resources of the sponsor and the intensity of the relationalship between farmer and
sponsor. Any crop can be contracted out using any of the models. Four models
(centralised, multipartite, intermediary and informal models) were selected in Gadag
and Bellary districts for the study. Ashwagandha and tulsi were important medicinal
plants selected for the study and techniques of tabular analysis and Cobb-Douglas
production function were used. The study revealed that majority of the farmers
belonged to middle age in all the contract farming models. Written agreement was
followed in centralised and multipartite models, whereas oral agreement was followed
in intermediary and informal models. Buy-back system was the major factor for
farmers to go for contract farming in all the models. The net returns per acre of
ashwagandha and tulsi were highest under multipartite model ( . 12,266.32 and
59,249.72) as compared to centralised ( . 10,608.85 and 52,093.41), informal
( . 8,351.91 and 37,401.03) and intermediary models ( 7,359.76 and 30,187.69)
respectively. The Benefit-Cost ratio of ashwagandha and tulsi was also highest in
multipartite model (1.73 and 1.90), followed by centralised (1.64 and 1.84), informal
(1.54 and 1.61) and intermediary models (1.49 and 1.50) respectively. Ratios of
Marginal Value Product to Marginal Factor Cost indicated that organic manure has
scope to increase gross returns of ashwagandha and fertilizers has scope to increase
gross returns of tulsi. Multipartite model showed better performance in terms of
income and availability of credit to the farmers. Therefore, all medicinal plant
growing farmers would do well in coming together and forming co-operative
organization of their own. Such an effort would benefit the farming community to
protect their interest against exploitation by private firms.
 
Date 2016-11-11T13:45:30Z
2016-11-11T13:45:30Z
2011
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/85103
 
Format application/pdf
 
Publisher UAS, Dharwad