Contract Farming in Gherkins Production: Drivers of Participation and Production Challenges

Abstract

Contract farming plays a vital role in the growth of horticultural crops in India, especially in gherkin cultivation by linking small and marginal farmers with agribusiness firms and exporters. The present study investigates the factors influencing the selection of the contract farming model and the constraints faced by farmers in gherkins cultivation, marketing and contractual arrangements. Data were collected from 120 contract farmers of Ballari and Haveri districts of Karnataka through random sampling using a pre-tested, well-structured schedule and analysed using the Rank Based Quotient (RBQ) method. The findings reveal that remunerative prices (RBQ 81.00) were the most influential factor in farmers' decision to opt for contract farming, followed by the buyback agreement (RBQ 74.00), input supply, technical assistance and transportation facilities. These factors highlight the importance of financial incentives, market assurance and logistical and technical support in promoting contract farming. In terms of production constraints, adverse weather conditions (RBQ 91.29) ranked highest, followed by anthracnose and viral diseases (RBQ 87.95), fruit fly infestation and labour scarcity. Marketing-related challenges included difficulty in meeting quality standards (RBQ 85.42) and the absence of a domestic market (RBQ 76.11), indicating the vulnerability of farmers to export market dependencies and strict quality norms. Contractual challenges were also prominent, with no compensation for crop loss (RBQ 85.36) and high input costs (RBQ 79.52) being major issues. The study suggests the need for risk-sharing mechanisms, input subsidies, quality technical services and transparent contractual practices to ensure the long-term sustainability and profitability of gherkin contract farming. These insights are crucial for policymakers, agribusiness firms and stakeholders aiming to improve the effectiveness of contract farming models in India.