Socio-economic factors and perceptions influencing contract farming adoption among onion farmers in Bhavnagar District of Gujarat

Abstract

This study investigates the socio-economic characteristics, selling preferences, and perceptions of farmers in Bhavnagar District, Gujarat, with a focus on onion farmers and their views towards contract farming. Using a descriptive research design, the study surveyed 150 farmers from Mahuva and Talaja talukas, employing a structured questionnaire for primary data collection, supplemented by secondary data from existing literature. The findings reveal that the majority of respondents are male (98%), with most farmers aged between 31 and 50 years. Farmers predominantly cultivate white onions (52%) and have extensive experience in farming (37.33% with over 15 years of experience). APMCs remain the dominant platform for onion sales (77.33%), while a significant portion of payments is received promptly, within one day (71.33%). Regarding contract farming, the study identifies key factors influencing its adoption, such as assured prices, guaranteed markets, and fixed pricing structures. However, low willingness to engage in contract farming was observed, with only 4.66 percent expressing interest. The primary source of information about contract farming comes from informal networks, including friends and neighbors (69.33%). The study also highlights farmers' perceptions, indicating that contract farming is viewed positively in terms of improving market linkages and agricultural practices, but its impact on poverty reduction and food security is less emphasized. These findings suggest the need for more effective extension services, better contract terms, and educational campaigns to increase farmer participation in contract farming. By addressing key concerns related to financial security, market access, and pricing stability, contract farming can be further promoted as a viable agricultural practice in the region.