Economics of davanam production under contract farming

Abstract

The research study was conducted during 2019-20 in Chikkaballapur district of Karnataka, India. In total 80 Davanam farmers under contract farming constituted the sample size of the study. The data were collected by employing personal interview method using pre-tested interview schedule. Ex-post-facto research design was used for the study. Mean, Standard Deviation, Frequency, Percentage Grouping, t-test correlation co-efficient and regression co-efficient statistical tools were used for analyzing the data. The results revealed that the total cost incurred for Davanam production was Rs. 87,158 per hectare, out of which Rs. 64,515 was variable cost and fixed cost was Rs. 22,643. The total quantity of Davanam yield obtained per hectare was 23.78 tons. The price per ton of Davanam was Rs. 10,000. The average gross return realized per hectare was Rs. 2,37,800. Net returns over variable cost from a hectare was Rs. 1,73,285 and net returns over total cost was Rs.1,50,642. The cost of production per kg incurred was Rs.3.67, net return over variable cost per kg was Rs.7.29 and net return over total cost per kg was Rs.6.33. The return per rupee of expenditure was Rs.2.73. The farmers were happy with the higher returns realized from Davanam compared to other crops. The contract farming had positive and significant impact on the social variables-organizational participation and extension contact and economic variables-annual income, savings and material possession. The variables mass media exposure, management orientation, organizational participation, extension participation and economic motivation of Davanam contract farming farmers were highly significant with annual income. The R² value specified that all 14 independent variables had contributed to the tune of 0.6870 per cent of variation in personal characteristics of Davanam contract farming farmers to annual income.