Impact of Contract Farming on Economic Status of Farmers in Karnataka

Abstract

In India contract farming has considerable potential where small and marginal farmers can no longer be competitive without access to modern technologies and support of different agencies involved in farming. Hassan, Tumkur, Kolar and Koppal districts of Karnataka were selected for the study. The results indicated that there was maximum per cent of increase in economic status of farmers from Hassan (12.12 per cent), Tumkur (14.85 per cent), Kolar (29.13 per cent) and Koppal (18.34 per cent) districts after adopting contract farming in their fields, respectively. B:C ratio of the four districts viz., Hassan (3.05), Tumkur (2.37), Kolar (2.76) and Koppal (6.18) gave positive signs towards improvement of farmers' economic status. Further, results showed that majority of the farmers faced financial and situational constraints rather than technological and extension constraints.