Constraints under Contract Farming in Sugarcane Cultivation: A Case of Odisha

Abstract

Contract farming requires a long term commitment between both the agri-business firms and contracted growers. It seems to offer solutions to many problems agriculture in India face, more so the agriculture in Odisha. Contract farming is supposed to help agriculture through strengthening the backward linkages. This paper evaluated various constraints faced by the sugarcane growers under contract farming system. 180 sugarcane growers were randomly selected under contract farming in two districts of Odisha state in India. Data were collected through structured interview schedule. The results showed that the contracted growers had major constraints in planning, procurement and payment followed by credit and finance, infrastructure, fertilizers and chemicals as well as technological support. It was discovered that the farmers did not have much constraint in supply of seed cane and other management practices. No written agreement, produce not lifted in time, no attempt for farm mechanization and irrigation facilities, harassment in payment, no community organization and cluster approach, no transparency in measurement, inadequate training, no subsidy facilities and insurance coverage were the major constraints of the growers which should be considered by the contracting firms for the sustainability of contract farming in sugarcane cultivation.