Comparative Performance of Chilli Cultivation in Contract and Non-Contract Farming-An Economic Analysis

This paper has analysed the comparative performance of chilli cultivation under contract and non-contract farming based on primary data obtained using pre-tested structured farming schedule through personal interview method. Multistage sampling method was adopted for selection of 120 farmers (60 contract farmers + 60 noncontract farmers). The total cost of chilli cultivation ( 104910.02/ha) was less under contract farming than noncontract ( 113354/ha) farming. There was a difference in yield between contract (30.65 q/ha) and non-contract (27.21 q/ha) farming. The net returns were more under contract farming ( 124965/ha) than under non-contract ( 85278/ha) farming. Thus, returns per rupee spent was higher in contract (2.19) than non-contract farming (1.75). There was also a reduction in transaction cost of chilli under contract farming. The study has suggested that farmers should be made aware about the benefits of contract farming which will increase their income.