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Comparative Economics of Contract and Non-Contract Farming of Banana in Gujarat#

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V.K. Gondalia *, Y.C. Zala and Rachana Kumari Bansal

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Abstract

Indian Journal of Economics and Development
Year : 2017, Volume : 13, Issue : 2
First page : ( 393) Last page : ( 398)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2017.00194.9

Comparative Economics of Contract and Non-Contract Farming of Banana in Gujarat#

Gondalia V.K.1,*, Zala Y.C.2, Bansal Rachana Kumari1

1Department of Agricultural Economics, B.A. College of Agriculture, Anand Agricultural University, Anand-388110 (Gujarat)

2International Agri-Business Management Institute (IABMI), Anand Agricultural University, Anand-388110 (Gujarat)

*Corresponding author’s email: vkgondalia@gmail.com

JELCodes: C00, Q10, Q13, Q14

Online published on 20 June, 2017.

Abstract

The results revealed that the total cost of cultivation (Cost C2) was little less on contract farm (340678 per ha) as compared to that of on non-contract farm (357874 per ha). Productions as well as price obtained by the contract farmers were higher as compared to non-contract farmers. The net returns received over Cost C2 was higher on contract farms (335326 per ha) as compared to on non-contract farms (203232 per ha). The average cost of production was lower on contract farms (488.12 per quintal) as compared to non-contract farms (559.99 per quintal). The yield uncertainty ratio and CV of yield as well as price uncertainty ratio and CV of price were less on contract farms than on non-contract farms indicating contract farm was less risky. These results clearly underlined the superiority of contract farming system over traditional non-contract farming of banana.