An empirical investigation on contract farming and its impact on farmers in India

Contract Farming is fast evolving as a mechanism of alternative marketing in the country. Punjab, Karnataka, Maharashtra, Madhya Pradesh, and Tamil Nadu have been the front runners in this regard. The experience of contract farming in India shows that there is considerable saving in consumption of inputs due to the introduction of improved technology and better extension services. This study carried out with an objective to find out farmer's perception towards contract farming. The study is a descriptive one and the sampling method adopted was non probability purposive sampling. Sample size was 132 respondents and they are farmers of Thanjavur District. The mode of communication was personal interview. An examination had been made from the reliability of the data to check whether random error causing inconsistency and in turn lower reliability is at a manageable level or not, by running reliability test. Based on the reliability test the minimum value of Co-efficient alpha (Cronbach's Alpha) obtained was. 823 Using Statistical Package for Social Sciences (SPSS) various relevant test were administered like 1) Factor analysis and 2) Multiple regression. Some of the relevant findings were derived that will be useful to the present Indian Scenario.