Acid lime Growers’ Feasibility Perception of Contract Farming.

Abstract

Contract farming is generally practiced by food processing firms wherein the risk is allocated between the company and its growers. Its key aspect is risk sharing and risk reduction. Hence we made an attempt to know the perception of acid lime growers and ascertain the prospects of contract farming. The sample comprised of 200 acid lime growers in 3 districts of Maharashtra, using random walk sampling technique. The data collected through a structured interview schedule were analyzed using the t-test of significance of difference between sample and population means. The study revealed significant relationship between occupation (t=1.596) and perceived acceptability of contract farming in citrus at 5 per cent level of significance. Similar relationship prevailed between annual income from acid lime (t=0.391) and perceived acceptability of contract farming in citrus. Guaranteed and fixed pricing structures was perceived to be the main advantage of contract farming which attracted attention of the maximum respondents (RBQ=175). As regarding risk factors, inadequate water for irrigation ranked the topmost factor followed by price uncertainty. In case of issues governing profitability, unfair market price has been ranked as the number one issue (RBQ=181.33) followed by over production and less market price (RBQ=178.33) to the produce. It is expected that this study will help policy makers to develop more appropriate marketing policies in India.