Economic Analysis of Sugarcane Production through Contract Farming in Odisha

The study has analysed the status of cropping pattern and comparative economics of contract and noncontract farming of sugarcane in the Dhenkanal district of Odisha by collecting data from 24 contract and 24 non-contract farmers for the year 2012–13. The cropping pattern being followed by contract and non-contract farmers was similar in the study area, it being Sugarcane — Paddy during kharif and Sugarcane—Pulses— Vegetables during rabi season. The study has revealed that net returns were more for contract farmers ( 28618/ha) than non-contract farmers ( 17364/ha). The study has identified the constraints faced by contract and noncontract farmers in the sample area. The study has concluded that contract farming helps the small farmers to increase their income. It has suggested that contract farming should be developed as a pro-poor institution through appropriate policy formulations.