Global Journal of Science Frontier Research: D Agriculture and Veterinary Volume 15 Issue 4 Version 1.0 Year 2015 Type : Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA Online ISSN: 2249-4626 & Print ISSN: 0975-5896 Contract Farming in Sugarcane and s of the Farmers A Study in Odisha Orissa University of Agriculture and Technology, India Abstract- Contract farming requires a long term commitment from both the contracted growers and sponsoring firms. Exploitative arrangements can jeopardize agribusiness investments. The study revealed that the contracted sugarcane growers reacted significantly towards immediate payment, arranging credit for infrastructure, implements and machineries on custom hiring, increasing risk bearing abilities, conflict resolution, quality production, transparency in measurement, contingent measures in catastrophes, exposure visit etc. The sponsoring firms have to analyze all these reactions of the respondents and extend all possible supports for sustainability of the contract farming in sugarcane cultivation. Keywords: contract farming, sugarcane cultivation, respondents, support. GJSFR-D Classification : FOR Code: 040699 ContractFarminginSugarcaneandsoftheFarmersAStudyinOdisha By Dr. Sangram Paramaguru, Dr. (Mrs. Anindita Saha, Mrs. Sanghamitra Mohapatra & Miss Plabita Ray Strictly as per the compliance and regulations of : 2015. Dr. Sangram Paramaguru, Dr. (Mrs Anindita Saha, Mrs. Sanghamitra Mohapatra & Miss Plabita Ray. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/, permitting all non commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
Contract Farming in Sugarcane and s of the Farmers A Study in Odisha Dr. Sangram Paramaguru α,dr. (Mrs Anindita Saha σ, Mrs.Sanghamitra Mohapatra ρ & Miss Plabita Ray Ѡ Abstract- Contract farming requires a long term commitment from both the contracted growers and sponsoring firms. Exploitative arrangements can jeopardize agribusiness investments. The study revealed that the contracted sugarcane growers reacted significantly towards immediate payment, arranging credit for infrastructure, implements and machineries on custom hiring, increasing risk bearing abilities, conflict resolution, quality production, transparency in measurement, contingent measures in catastrophes, exposure visit etc. The sponsoring firms have to analyze all these reactions of the respondents and extend all possible supports for sustainability of the contract farming in sugarcane cultivation. Keywords: contract farming, sugarcane cultivation, respondents, support. I. Introduction C ontract farming would appear to have considerable potential where small scale Agriculture continues to be wide spread. It is a win-win situation for both the contracted growers and sponsoring firms in improvement of farm income, development of Agro-processing and expansion of rural economy. The contracted growers get the benefits of input and production services, exposure to appropriate technology, develop knowledge and skill competency in successful crop management, guaranteed and fixed sale price as well as access to reliable markets. However; increased risk, unsuitable technology, crop incompatibility, monopoly and manipulation of quality specifications by the contracting firms are some of the potential problems faced by the farmers. These potential problems however can be minimized by efficient management, regular guidance and close monitoring of fields operations. A study was therefore designed to assess the reactions of the sugarcane growers towards successful contract farming. as well as Bolagarh and Begunia blocks in Khurdha districts were selected considering the potentialities of sugarcane cultivation and involvement of farmers under contract farming. Twenty sugarcane growers each under contract farming from three panchayats of each blocks were selected randomly as the respondents for the study covering total sample size of 240. s of the respondents towards planning, organizing, input supply, credit and finance, technological backstopping, infrastructure support, harvesting and marketing were selected as the variables. Information was collected personally from the respondents with a semi-structured schedule pre-tested earlier. The data collected on scale point of regularly, occasionally and never over the framed statements were analyzed with value of 3, 2 and 1 respectively., gap percentage and multiple regression tests were employed to reveal the results. III. Results and Discussion Planning is the most fundamental function of management. Effective planning provides for cooperative and coordinated efforts, facilitates timely execution of tasks, reduce uncertainties and makes implementation easier. Analysis of data (Table 1 revealed that considerable percentages of gaps IV Year 2015 25 Journal of Science Frontier Research Volume XV Issue V ersion I 1Global D II. Methodology The study was undertaken in Dhenkanal and Khurdha districts of Odisha during 201 Dhenkanal sadar and Kamakshyanagar blocks in Dhenkanal Author α: SMS, Agril. Extension, Krishi Vigyan Kendra, Puri, O.U.A.T, Odisha. e-mail: sangram_takan@yahoo.co.in Author σ: Asso. Professor, Agril. Extension, Palli Siksha Bhavana,Visva- Bharati, Santiniketan, West Bengal. Author ρ: Asst. Prof. Dept. of Home Science, Extension and Communication Management, SHIATS, Allahabad, Uttar Pradesh. Author Ѡ: Ph. D. Schola, Agronomy, O.U.A.T, Bhubaneswar, Odisha. 2015 Global Journals Inc. (US
Global Journal of Science Frontier Research D Volume XV Issue IV V ersion I Year 2015 26 Contract Farming in Sugarcane and s of the Farmers A Study in Odisha Table1: s towards planning by contracting firms Dhenkanal district (% Khurdha district (% (n=240 (% 1. Participatory decision making 1.82 39.33 1.78 40.67 1.80 40.00 Cluster approach 1.82 39.33 1.98 34.00 1.90 36.67 3. Optimum utilization of available resources 1.98 34.00 1.87 37.67 1.93 35.67 4. Participatory selection of land 12 29.33 07 31.00 10 30.00 5. Beneficiary selection with common agreement 1.84 38.67 1.78 40.67 1.81 39.67 6. Due attention for environment protection 1.93 35.67 1.98 34.00 1.96 34.67 7. Detail understanding of the objectives 1.86 38.00 1.95 35.00 1.91 36.33 (Maximum obtainable 3 were observed on various aspects of planning as mentioned in the table. Participatory decision making facilitates team spirit, coordination and cooperation among the growers. Cluster approach makes effective monitoring and supervision as well as optimum utilization of resources. Moreover, the growers should have detail understanding about contract farming. The officials of the contracting firms have to analyze these Table 2 : s towards organizational support deficiencies and take steps accordingly while planning for sugarcane cultivation. Community organization and group formation are essential for developing team spirit and interest among the farmers to involve under contract farming. As revealed from the study (Table 2, the respondents of both the Dhenkanal district Khurdha district (n=240 (% (% (% 1. Community organization 1.75 41.67 1.85 38.33 1.80 40.00 Group formation 1.83 39.00 1.68 44.00 1.76 41.33 3. Leadership development 11 29.66 03 333 07 31.00 4. Motivating for risk bearing ability 21 26.33 38 20.67 30 23.33 5. Climate of team work 1.98 34.00 05 31.67 02 367 6. Conflict resolution 1.67 44.33 1.53 49.00 1.60 46.67 7. Assigning responsibility individually 1.95 35.00 1.93 35.67 1.94 35.33 (Maximum obtainable 3 districts had favorably opined for leadership development, motivating for the risk bearing abilities and climate of team work. Further emphasis may be given for community organization, group formation, conflict resolution and assigning responsibility to individual growers for the sustainable continuance of sugarcane cultivation under contract farming. Many contractual agreements involve considerable production supports in addition to the supply of basic inputs like seeds, fertilizers, plant protection chemicals etc. for desired production with quality parameters. The data intable-3 revealed for the contradictory opinions among the respondents of both the 2015 Global Journals Inc. (US
Table 3 : s towards input support Dhenkanal district Khurdha district (n=240 (% (% (% 1. Pre-arrangement of inputs 07 31.00 1.68 44.00 1.88 37.33 Timely supply and use 08 30.67 1.88 37.33 1.98 34.00 3. Supply of quality inputs 1.98 34.00 06 31.33 02 367 4. Developing competency in use 17 27.67 25 25.00 21 26.33 of inputs 5. Arranging additional inputs 1.92 36.00 1.93 35.67 1.93 35.67 6. Transparency in supply of inputs 1.67 44.33 1.82 39.33 1.75 41.67 (Maximum obtainable 3 have to analyze all these reactions of the growers and ensure availability of quality inputs in time for optimum quality production. Contract farming facilitates the access of the growers to the credit institutions for credit support since Table 4 : towards credit and finance support sugarcane crop required more production inputs. s of the respondents revealed (Table 4 that very poor Dhenkanal district Khurdha district (n=240 (% (% (% 1. Providing credit for crop management 1.67 44.33 1.70 43.33 1.69 43.67 Arranging credit for crop inputs 1.58 47.33 1.80 40.00 1.69 43.67 3. Liasoning for subsidy facilities 1.46 68.49 1.62 46.00 1.54 48.67 4. Arranging credit for infrastructure 1.33 55.67 1.48 50.67 1.41 53.00 5. Crop insurance 1.48 50.67 1.53 49.00 1.51 49.67 (Maximum obtainable 3 attempts were taken for providing necessary credit support. The contracting firms have either to provide credit for production management or make arrangement of credit from the credit institutions enabling the respondents to use recommended inputs for desired quality production as well as developing infrastructure. Liasoning have also to be made for crop insurance and Contract Farming in Sugarcane and s of the Farmers A Study in Odisha Table 5 : s towards infrastructure support subsidy facilities to develop interest among the growers for continuance of the contract farming. Farm mechanization is of paramount importance due to labour scarcity and wage hike. Moreover; irrigation facilities are required for successful crop rising. As observed from Table 5, the respondents had favourably opined for Dhenkanal district (% Khurdha district (n=240 (% (% 1. Motivating for farm mechanization 05 31.67 17 27.67 11 29.67 Arranging implements/ machineries on custom hiring 1.54 48.67 1.40 53.33 1.47 51.00 3. Developing irrigation facilities 1.77 41.00 1.62 46.00 1.70 43.33 4. Skill competency in use of implements 42 19.33 12 29.33 27 24.33 5. Arranging credit for infrastructure 1.58 47.33 1.73 433 1.66 44.67 Journal of Science Frontier Research Volume XV Issue IV V ersion I 1Global Year 2015 27 D 2015 Global Journals Inc. (US
Global Journal of Science Frontier Research D Volume XV Issue IV V ersion I Year 2015 28 6. Contract Farming in Sugarcane and s of the Farmers A Study in Odisha Increasing risk management abilities for infrastructure (Maximum obtainable 3 farm mechanization and skill competency in use of implements. But the reactions of the respondents towards arranging implements and machineries on custom hiring, developing irrigation facilities, credit for developing own infrastructure along with increasing their risk bearing abilities are genuine and suggested for favorable action by the contracting firms towards these infrastructure support. 1.51 49.67 1.68 44.00 1.60 46.67 Table 6 : s towards technological support Technologies are changing very fast. Small scale farmers are reluctant frequently to adopt these new technologies because of possible risk and cost involved. These new technologies should therefore be initiated in a well managed and structured farming operation. s of the respondents towards technological support indicated (Table 6 that the respondents of Dhenkanal district Khurdha district (n=240 (% (% (% Developing knowledge 1. 31 23.00 32 267 32 267 competency Skill competency in use of 25 25.00 30 23.33 28 24.00 technology 3. Patience in educating farmers 1.96 34.67 1.97 34.33 1.97 34.33 Exposure visit for gaining 4. 1.77 41.00 1.75 41.67 1.76 41.33 experience 5. Continuous flow of information 1.98 34.00 03 333 01 33.00 6. Proper guidance 08 30.67 13 29.00 11 29.67 Sharing information with 7. 1.70 43.33 1.73 433 1.72 467 farmers 8. Timely feed back 1.73 433 1.70 43.33 1.72 467 Encouraging farmers for 9. 1.75 41.67 1.82 39.33 1.79 40.33 discussion Believe farmers ability in 10. 25 25.00 46 18.00 36 21.33 success (Maximum obtainable 3 both Dhenkanal and Khurdha district were almost of similar opinions. The respondents had favourably opined for developing knowledge and skill competency as well as believe farmers ability in success. But, further strengthening are suggested towards sharing of information with farmers for detail understanding, timely guidance, encouraging for discussions to clarify doubts, exposure visit for experience. Contact farming provides market guarantee to the growers along with procurement of produce with remunerative price. The alayzed data reflected in Table- 7 revealed that the respondents both Dhenkanal and Khurdha district had Table 7 : s towards harvesting and marketing support Dhenkanal district Khurdha district (n=240 (% (% (% 1. Educating for timely harvest 38 20.67 33 233 36 21.33 Participatory decision on harvesting 33 233 25 25.00 29 23.67 3. Fixing remunerative sale price 1.68 44.00 1.88 37.33 1.78 40.67 4. Immediate lifting of the produce 1.78 40.67 1.68 44.00 1.73 433 5. Due attention for quality maintenance 1.77 41.00 1.53 49.00 1.65 45.00 6. Immediate measurement at factory side 1.96 34.67 1.68 44.00 1.82 39.33 2015 Global Journals Inc. (US
Contract Farming in Sugarcane and s of the Farmers A Study in Odisha 7. Transparency in measurement 1.71 43.00 1.60 46.67 1.66 44.67 8. Immediate payment 1.40 53.33 1.15 61.67 1.28 57.33 (Maximum obtainable 3 reacted for not fixing remunerative sale price, insufficient attempt for quality maintenance, no transparency in measurement, not lifting the produce in time and no immediate payment. All these indicated for the deviation of contracting norms and monopolies of the sponsoring firms. Hence, the sponsoring firms have to analyze these reactions and take appropriate steps for the sustainability of the contract farming in sugarcane cultivation. Multiple regressions revealed (Table-8 that the best fitted regression equation could explain only 17.90% of the total variance in influencing the attitudes of the respondents towards sugarcane cultivation under contract farming. It the therefore inferred that socioeconomic variables of the respondents had not much influence in developing interest among the growers towards sugarcane cultivation under contract farming. Table 8 : Regression analysis of the socio-economic variables influencing sugarcane cultivation (N=240 Variable Un standardized Co-efficient Standardized Co-efficient T value Significance Beta Std. Error Beta Std. Error 1 Age -0.637 3.042-0.016 0.077-0.210 0.834 2 Caste 0.302 1.321 0.015 0.065 0.228 0.819 3 Education -456 027-0.099 0.081-1.212 0.227 4 Family type 3.063 3.677 0.065 0.078 0.833 0.406 5 Family size 679 485 0.083 0.077 1.078 0.282 6 Social participation -0.195 1.279-0.011 0.071-0.152 0.879 7 Extension contact -0.061 0.597-0.007 0.070-0.102 0.919 8 Cosmopoliteness 0.086 0.666 0.009 0.074 0.129 0.897 9 Housing pattern 1.015 1.483 0.046 0.067 0.685 0.494 10 Holding size 3.523 1.981 0.166 0.093 1.778 0.077 11 Occupation 739 071 0.095 0.072 1.323 0.187 12 Possession of farm implements 0.431 0.302 0.157 0.111 1.424 0.156 13 Sources of information 0.716 0.829 0.057 0.066 0.863 0.389 14 Annual income -1.113 1.474-0.049 0.065-0.755 0.451 15 Social character -0.188 0.513-0.052 0.143-0.367 0.714 16 Economic character 0.179 0.637 0.040 0.142 0.281 0.779 R²=0.179, Adj.R²=0.113, S.E= 15.187 IV. Conclusion Sugarcane growers are usually opting for contract farming due to assured marketing with remunerative price, technological expertise and supply of quality inputs. But the findings revealed that the respondents had reacted much towards weak supports on immediate payment, arranging credit for farm mechanization and irrigation, implements and machineries on custom hiring, increasing risk bearing abilities, conflict resolution, quality production, transparency in measurement, contingent measures in catastrophes, exposure visit etc. Socio-economic variables of the respondents had not much influence in accelerating the proficiency of the respondents. It is therefore suggested that the sponsoring firms have to analyze these reactions and extend all possible support for sustainability of the contract farming in sugarcane cultivation. References Références Referencias 1. Adewumi, M.O., Afolayan, A.J. and Masika, P.J., (2010: Contract farming approach to essential oil production in the Eastern Cape province of South Africa, Journal of Agriculture and Social Research, 10 (1 : 73-79. Gupta, S., 2002 : Contract farming, National Bank News Reviews, 18 (1 : 64-67. 3. Kumar, H and Singh, R., (2005: Success and failure of contract farming in Himachal Pradesh; A case study of cauliflower seed production, Indian Journal of Agricultural Marketing, 19 (2:170-174. 4. Masakune and Henson, S. 2005 : why do small scale producers choose to produce under contract, World Development 33 (10 : 1721-1733. 5. Pandit, A, Pandey, N.K., Rana, R.K. and Lal, B. 2009 : An impirical study of grains from potato contract farming, Indian Journal of Agriculture Economics, 64 (3 : 200-204. Journal of Science Frontier Research Volume XV Issue IV V ersion I 1Global Year 2015 29 D 2015 Global Journals Inc. (US
Contract Farming in Sugarcane and s of the Farmers A Study in Odisha Global Journal of Science Frontier Research D Volume XV Issue IV V ersion I Year 2015 30 This page is intentionally left blank 2015 Global Journals Inc. (US