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Mode of Operation and Performance of Contract Farming of Cottonseed in Haryana

Listed author(s):
  • Kumar, Shiv
  • Devender
  • Chakarvarty, Kavita
  • Chand, Puran
  • Dabas, J.P.S.
Registered author(s):

    The quality of cottonseed matters most for the successful product development. The quality cottonseed production is monitored by the Haryana State Seed Certification Agency in the state. The study has reviewed the prevailing contract cotton farming models; has studied mode of operation of cotton contractual arrangements; has analyzed the production matrix, growth and contributions; and has discerned and quantified variations in intensive structure of public and private seed firms. It has used both primary and secondary data. Appropriate statistical tools, viz. exponential growth model, index, etc., have been used to study the data. All categories of farmers have been brought together under the management of private seed agency for production of cottonseed of a single variety on a large homogeneous block. Contract cotton farming has fully vetted the legal agreements with their growers. The public and private agencies pay incentive price to farmers which is higher than the prevailing market price. Farmers of private agency are free from the intricacies of input and output markets, receive all technology and technical know-how and have facilities for production and consumption loans, whereas farmers of public agency are trailed far behind in terms of these benefits. Private agency has flourished at the expanse of public agency since contract cotton is incentivised by private contractors under flexible and farmerfriendly production regime. The latest production technology, strong capital and management base of private seed agency have left the public agency behind in the competitive race. The study has concluded that favourable changes in socio-economic and legal framework of government policies have to be encouraged for the active participation of private sector in cottonseed business and contract cottonseed farming has emerged as a viable alternative farming in the post-WTO regime.

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    Article provided by Agricultural Economics Research Association (India) in its journal Agricultural Economics Research Review.

    Volume (Year): 20 (2007)
    Issue (Month): 1 ()

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    Handle: RePEc:ags:aerrae:47428
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    1. Fraser, Iain, 2005. "Microeconometric analysis of wine grape supply contracts in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), March.
    2. Rachael E. Goodhue, 2000. "Broiler Production Contracts as a Multi-Agent Problem: Common Risk, Incentives and Heterogeneity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 606-622.
    3. Rachael E. Goodhue, 1999. "Input Control in Agricultural Production Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 616-620.
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