Inputs and Services Delivery System under Contract Farming: A Case of Broiler Farming§

The paper has analyzed production-related aspects of broiler farming under contract and independent management, and has examined inputs and services provision arrangements. About two-thirds of the contracts are of long duration of three years, and the remaining are of two years or eleven months duration. Surprisingly, none of the contract farmer possesses a copy of the agreement with him. The average net return per kg of live weight as well as per bird has been found higher in non-contract than contract farmers. The average net returns per bird increases with increase in the size of the farm for both the groups. Despite contract for supply of inputs and sale of output, contract farmers face problems like delay in supply of inputs, high feed prices, delay in lifting the produce, delay in payment, low price, and sometime even rejection of output. Beside these problems, low growing charges, delay in providing chicks, delay in providing veterinary services, high visiting charges and deduction of tax at source are some other problems being faced by the contract farmers.