Contract Farming in Marigold in Tamil Nadu: An Economic Analysis

This study has assessed the economics of marigold cultivation under contract farming vis-à-vis non-contract farming in Erode district of Tamil Nadu. It has also examined the yield and price uncertainty, and contractual arrangements in marigold cultivation. The study has observed that contract farms realized a higher net profit ( 45258/ha than the non-contract farms ( 32531/ha). There were no price uncertainties in contract farming, whereas there were very high price uncertainties in the case of non-contract farming. The farmers were found satisfied with the terms of contract. The major benefits to the contract farmers were assured buyer for the produce, all the produce could be sold even in case of damage and the farm gate collection. The major reasons reported by the former contract farmers for discontinuing cultivation of marigold on contract was low price for the produce.