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

Author

Listed:
  • Kumar, Shiv
  • Devender
  • Chakarvarty, Kavita
  • Chand, Puran
  • Dabas, J.P.S.

Abstract

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.

Suggested Citation

  • Kumar, Shiv & Devender & Chakarvarty, Kavita & Chand, Puran & Dabas, J.P.S., 2007. "Mode of Operation and Performance of Contract Farming of Cottonseed in Haryana," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
    • Handle: RePEc:ags:aerrae:47428
    DOI: 10.22004/ag.econ.47428
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Pandit, Arun & Pandey, N.K. & Rana, Rajesh K. & Lal, Barsati, 2009. "An Empirical Study of Gains from Potato Contract Farming," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3), pages 1-12.
    2. Johny, J. & Veettil, P.C. & Yashodha, Y., 2018. "Group contracts and sustainability - Experimental evidences from smallholder rice seed production," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276042, International Association of Agricultural Economists.
    3. Veettil, P. Chellattan & Yashodha, Y. & Johny, J., 2018. "Group contracts and sustainability - Experimental evidence from smallholder rice seed production," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277563, International Association of Agricultural Economists.
    4. Swain, B.B., 2016. "Does Technological Linkage in Contract Farming Increase Farm Productivity and Efficiency? The Case of Hybrid Paddy Seed Cultivation in Undivided Andhra Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 29(2).

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