Comparative Economic Analysis of Baby Corn under Contract and Non-Contract Farming in Karnataka
Roopa, H.S. | Nagaraj, N. | Chandrakanth, M.G.
The economic analysis of contract and non-contract farming of baby corn in Karnataka has been presented. The study has revealed that the total cost incurred to cultivate baby corn was 8,499, 9,948 and 9,653 for farmers under foreign firm, domestic firm and non-contract, respectively. The contract farmers realized higher productivity (19.5 q/acre under foreign company and 22.6 q/acre under domestic company) compared to non-contract farmers (16.2 q/acre). For non-contract farmers, the net returns were almost one-third of that of farmers under a domestic firm and almost one-fourth of the farmers under a foreign firm. The firms supplied the necessary inputs to the farmers, thus reducing the need of working capital to the tune of 30 per cent. The transaction cost was meagre for contract farmers (89/acre and 6/acre) for farmers under foreign and domestic firms, respectively), while it was 2,318/acre for non-contract farmers. The technical assistance was also provided to farmers under contract with a focus on higher productivity and better quality produce.
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