An Economic Analysis on Contract Farming in Vegetables Seed Production in Selected Areas of Rangpur District

Contract farming can be described as half-way house between farm production and corporate farming. It involves contractual relation between farmers and central processing or exporting unit/firms. Seed is a vital input and dynamic instrument for increasing agricultural production. The present study was conducted at Mithapukur and Pirgachha Upazilas under Rangpur district to assess the profitability, contribution of factors to production and changes in socio-economic status of the vegetable seed contract growers. In total 90 open pollinated vegetables seed contract growers were randomly selected in consultation with BADC personnel at the rate of 30 contract seed growers (20 small and 10 medium) from each of the three selected vegetable crops viz., tomato, brinjal and okra. Total cost, gross margin, gross return, net return and benefit cost ratio (undiscounted) were estimated for economic analysis. The results revealed that per hectare (ha) total cost, gross return and net return of open pollinated vegetables seed production were estimated at Tk. 253136, 360000 and 106864 in tomato, Tk. 219765, 430000 and 210235 in brinjal and, Tk. 185072, 237120 and 52048 in okra, respectively. Benefit cost ratios came out to be 1.42, 1.96 and 1.28 for tomato, brinjal and okra seed production, respectively which was found a bit higher for the brinjal seed contract growers. The marginal productivity analysis indicated that the inequality of the contract growers in the study area have failed to show their efficiency in using the resources. The overall socio-economic status of the sample contract growers were found increased by about 26.02 percent. Scarcity of skilled labor, inadequate and untimely capital, non-existence of crop insurance were the problems confronting the open pollinated vegetables seed contract growers. Fixing scale of finance, crop insurance and government intervention were the suggestions