Contract Farming In Marigold

Contract farming is an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices. Marigold is one of the most commonly grown flower crops used extensively as decorative plants, religious and social functions in different forms. It has gained importance amongst the growers and flower dealers on account of its easy cultivation and commercial value. Total sample size for the study was 100. Net income was Rs. 45257.98 per ha for contract farmers and it was Rs. 32694.54 per ha for non-contract farmers. Cobb-Douglas and stochastic frontier production functions were used. Yield uncertainty and price uncertainty were estimated. The factors determining the participation of farmers in the contract farming were fixed price, experience in contract farming and total returns from marigold. The benefits of marigold cultivation under contract farming were assured buyer for the produce, no rejection of produce which indicates that though there was damage and poor quality of produce, all the produce were procured by the firm, and the farm gate collection.