INTER-LINKING OF ONION PRODUCTION AND MARKETING:A CASE STUDY OF ONION CONTRACT FARMING

摘要

Corporate agriculture in form of contract farming has potential for improvement offarm incomes and expansion of rural economy. Contract farming refers to type of inter-linkage in which production and supply of agricultural produce have advance contracts. In this paper impact of interlinking onion cultivation and marketing through contract farming is studied in Jalgaon district of Maharashtra using primary survey data. The study shows thatfarmers are generally satisfied with the contract arrangement and they are shieldedfrom market price risk Farmers acknowledge the training imparted by the company on Good Agriculture Practices. Nevertheless, about 9% ofthe farmers were of the view that they should not be compelled to use pesticides. The benefit to cost ratio of onion cultivation under contractfarming is much higher than the non-contract farming. Output elasticity of input use show that both land and labour have positive and significant impact under contract and non-contract onion cultivation. However, for pesticides, output elasticity is positive and significant only in case of non-contract farming. The study also points towards a possibility of excessive use ofpesticides under contract farming.