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Abstract

Contract farming is practised in many crops like cotton and coleus in Tamil Nadu. The objectives of the present study were: (1) to identify the constraints faced by the contract farmers in contract farming, (2) to examine the apprehension of non-contact farmers regarding contact farming. The study was conducted in Salem and Viluppuram districts with 80 contract and 80 non-contract farmers. Sudden intervention of the brokers at harvesting time, absence of government’s role, no improvement in the price, dissatisfaction with the advices, lower price, rejection of produce and stress were the constraints faced by the contract farmers. In case of the non-contract farmers, lower price, unknown procedures, no belief in contracting company, insecurity and not approached by the contracting company were some of the apprehensions reported by the non-contract farmers. The overall findings of the study strongly suggest the need for addressing the pertinent issues and setting a favourable stage for promoting the participation of farmers in contract farming.