Based on the primary data collected from a sample of five contracting firms and sixty contract farmers from Ludhiana and Patiala districts with help of personal interviews, the present study was conducted to investigate-the problems faced by contract farmers and contracting agencies involved in flower crops for seed production. The major problems of contract farmers included were high production risk, high cultivation costs, high rejection-rate of output, irregular payment and low contract prices. Contract firms face significant challenges due to-poor quality output, farmers’ problematic behaviour and their unwillingness to follow prescribed practices. The study recommended the strengthening of the extension system, mechanization of the cultural operations-of floricultural crops and provision of crop insurance under contract farming for large-scale adoption of floriculture. Written contracts with provisions for legal action should be made compulsory in order to protect-contract farmers from irregular payments and manipulation of terms by contract companies.
Contract farming, Floriculture, Problems
