Analytical Study of Contract Farming System in Punjab

A study was undertaken in Punjab to analyse farmer's perception regarding contract farming and the related constraints. It has been found that majority of the respondents were innovative, they had the ability to take risk and they were very economically motivated for starting contract farming because of secured returns and more income as stated in the agreement. Majority of the respondents agreed with quantity of the seeds and availability at right time, quality of fertilizers as input provided in the agreement. There were a mix response regarding the quality of seeds, quality of pesticides and the availability of technical know-how. Majority of the respondents disagreed with the market support and payment for produce as a provision in the agreement. The main problems faced by the respondents were the strict grading practices, non- marketing of the produce, non-numerative prices fixed by the contract agencies and late payment. Similarly, major problem faced by the contract agencies was negative attitude of the farmers towards contract farming. The majority of the respondents suggested that there should be an arrangement for assured procurement and at fixed rate and quality standards should be fixed at the time of agreement.