Maize Production through Contract Growing System

Tanvir M. B. Hossain1, M. I. Hossain2, M.R. Karim3, AKM. H. Haque4

Abstract This present study as underta!en in "ina#pur and $a%monirhat durin& 2''4(') to measure the pro*ita+i%ity o* mai,e produ-tion under -ontra-t &ro in& system. The samp%ed &ro ers ere the -ontra-t &ro ers o* t o or&ani,ations name%y, "ipshi!ha and "oe% A&ro Industry under the t o distri-ts respe-tive%y. The non(-ontra-t &ro ers ere a%so se%e-ted *rom the respe-tive areas. The study revea%ed that -ontra-t &ro ers spent T! 4.34 to produ-e per !& mai,e on *u%% -ost +asis and T! 3.'. on -ash -ost +asis. They earned &ross return o* T! /.0.1!& hi-h %eaded to &ross mar&in o* T! 2./3 on *u%% -ost +asis and T! 3.0' on -ash -ost +asis. The -ost o* produ-tion o* -ontra-t &ro ers as 1'2 hi&her on *u%% -ost and 1/2 hi&her on -ash -ost +asis than that o* non(-ontra-t &ro ers. The &ross returns and &ross mar&ins o* -ontra-t &ro ers ere a%so hi&her than non( -ontra-t &ro ers +y 232 and ))2 on *u%% -ost and 202 on -ash -ost +asis respe-tive%y. 3armers4 share under -ontra-t &ro in& system shou%d +e hi&her and this shou%d +e en-oura&in& to the *armers. 3or the matter, more resear-h is needed *or the improvement o* the -ontra-t &ro in& system in the areas. Introduction Mai,e is the third -erea% -rop a*ter ri-e and heat and it is &ro n a%% over Ban&%adesh. In the year 2''1('2 the produ-tion o* mai,e as 1,.2,4'' mt 5HA6, 2''37. 8ro th rate o* area, produ-tion and yie%d o* mai,e ere 1..9/, 3).39 and 1..)3 per -ent respe-tive%y. At present, per year requirement o* mai,e is )''(/'' ton. Mai,e requirement o* the -ountry is *u%% *i%%ed +y /'2 import and 4'2 %o-a% produ-tion. Thou&h produ-tion o* mai,e is in-reasin& +ut demand o* mai,e is a%so in-reasin&. 6o, mai,e produ-tion shou%d a% ays have to !eep in in-reasin& trend. 3armin& throu&h -ontra-t &ro in& system is one o* the important ays to in-rease mai,e produ-tion. This system not on%y in-reases the produ-tion +ut a%so redu-es the num+er o* intermediaries o* the mar!etin& -hanne%. In our -ountry, there are many or&ani,ations ho are or!in& *or in-reasin& mai,e produ-tion. 6ome o* the or&ani,ations are produ-in& mai,e throu&h -ontra-t &ro in& system. It is, there*ore, ne-essary to eva%uate the -ontra-t &ro in& system that prevai%s in those or&ani,ations. :ith this vie in mind, the present study has +een underta!en. Objectives of the Study i. ii. iii. iv. To identi*y the avai%a+%e -ontra-t &ro in& systems and their or!in& patterns, To measure the e-onomi- per*orman-e o* mai,e produ-tion throu&h -ontra-t system, To -ompare the pro*ita+i%ity +et een the produ-tion o* -ontra-t &ro ers and non( -ontra-t &ro ers and To *ind out the pro+%ems and prospe-ts o* this system.

---------------------------------1 6-ienti*i- ;**i-er, 2<hie* 6-ienti*i- ;**i-er, 36enior 6-ienti*i- ;**i-er, 4=rin-ipa% 6-ienti*i- ;**i-er, A&ri%. >-on. "ivision, BARI, ?oyde+pur, 8a,ipur.

Materia s and Methods The study as -ondu-ted in 8hora&hat thana o* "ina#pur and =at&ram thana o* $a%monirhat distri-ts here *armers ere e@tensive%y -u%tivatin& mai,e. To *u%% *i%% the o+#e-tive, t o mai,e -ontra-t &ro in& or&ani,ations ere se%e-ted *or the study. To -ompare the e-onomi-s o* mai,e produ-tion +et een -ontra-t and non(-ontra-t *armers, ne-essary in*ormation ere -o%%e-ted *rom the se%e-ted samp%es. A tota% o* 9' samp%es ta!in& 4' *rom ea-h distri-t ere se%e-ted purposive%y *or the study. The data ere -o%%e-ted +y survey method ith the he%p o* pre(desi&ned and pre(tested intervie s-hedu%es +y *ie%d investi&ators in -o%%a+oration ith %o-a% *ie%d sta** under dire-t supervision o* the resear-hers durin& 2''4('). The -o%%e-ted data ere +e ana%y,ed +y ta+u%ar and statisti-a% methods to a-hieve the o+#e-tives set *or the study. !esu ts and "iscussion Contract Growing System Contract Growing# A"ipshi!ha4 is an B8; ho is or!in& *or the mai,e produ-tion and e@tension in the 8hora&hat thana o* "ina#pur distri-t. They are -ontinuin& mai,e produ-tion under -ontra-t &ro in& system sin-e %ast *ive years. This year they have -ontra-ted 9. *armers *or mai,e produ-tion. They norma%%y &ive inputs *or mai,e produ-tion to the *armers and a*ter harvestin& mai,e they ta!e the va%ue o* the &iven inputs ith servi-e -har&e 51'27 *or the distri+ution -ost o* those inputs. They &ive the *armers mai,e seeds 510 !&1ha7, urea 5)24 !&1ha7, T6= 52/2 !&1ha7, M= 522) !&1ha7, 8ypsum 51/. !&1ha7, Bora@ 51) !&1ha7, Cin- 51) !&1ha7 a tota% amount as T! 1),.'/1ha. A*ter &ivin& those inputs, they !eep monitorin& o* mai,e -u%tivation time to time and a%so &ive advi-e re%ated to mai,e -u%tivation te-hnique to the *armers. A*ter harvestin& and se%%in& their produ-ts, the *armers repay T! 1.,2..1ha *or input -ost ith the servi-e -har&e. "ipshi!ha -ontri+uted 4)2 o* the &ross -ost on *u%% -ost +asis and //2 on -ash -ost +asis. It is interestin& to note that the *armers repay 322 o* their &ross return to the respe-tive B8; *or the inputs supp%ied to them. Contract $uying# In $a%monirhat, there is an industry named A"oe% A&ro Industry4 ho pur-hases mai,e *rom the *armers +y -ontra-t &ro in& system. They &ive money at the rate o* T! 24.''1ha to the *armers *or the -ost o* produ-tion. They &ive this money at the +e&innin& o* the -rop season. 3ramers -o%%e-t this money *rom the %o-a% +ran-h o* B<< +an! throu&h "oe% A&ro Industry. They a%so &ive seed D 2' !&1ha and inse-ti-ide durs+an va%ued T! 10' to the *armers. The industry authority reim+urses the tota% -ost o* seeds and inse-ti-ides at the time o* +an! %oan distri+ution. 3ina%%y a*ter mai,e produ-tion, they +uy mai,e *rom a%% -ontra-t *armers +ut they don4t pay -ash to the *armers rather they dedu-t the %oan money *or the va%ue o* mai,e. "oe% A&ro Industry repays the money at the rate o* T! 2)03)1ha to the B<< +an! on +e ha%* o* the *armers. B<< Ban! ta!es 1'2 interest *or the %oan &iven to the *armers. The industry &ives trainin& to the -ontra-t *armers *or -u%tivation pra-ti-es and they a%so monitor the *armers4 *ie%ds and &ive them su&&estion *or so%vin& di**erent pro+%ems. They *i@ mai,e pri-e on the +asis o* moisture -ontent. The %o er the moisture -ontent, the hi&her the mai,e pri-e. "oe% A&ro Industry +uys mai,e and sa%e it dire-t%y to the pou%try *eed mi%%s at 8a,ipur. "oe% A&ro Industry -ontri+uted .32 o* the &ross -ost on *u%% -ost +asis and 1''2 on -ash -ost +asis. The *armers repay 4)2 o* their &ross return to the "oe% A&ro Industry *or inputs and -ash &iven to them.

Socio-%conomic Profi e of Sam& ed 'armers In this study, *armer4s a&e, edu-ation and %and o nership status ere -onsidered to eva%uate their so-io(e-onomi- -onditions. In "ina#pur, the avera&e a&e o* the -ontra-t &ro ers as 4' years and 4'2 o* the *armers had primary and se-ondary edu-ation and their *arm si,e as '.94 ha1*arm. The -ontra-t *armers had '..3 he-tares o* tota% -u%tivated %and per *arm and they produ-ed mai,e under '.3. he-tares o* %and, hi-h as )32 o* the tota% -u%tivated %and. The avera&e mai,e -ontra-t &ro in& %and as '.20 he-tares per *arm, hi-h as 992 o* the mai,e -u%tivated %and. The non(-ontra-t &ro ers o* "ina#pur distri-t as on avera&e 42 years o%d and 3'2 o* the samp%ed *armers had primary edu-ation and their *irm si,e as 1.9/ ha1*arm. Their tota% -u%tivated %and as 1..1 he-tares and mai,e produ-tion %and as under '.0. he-tares, hi-h as /'2 o* the tota% -u%tivated %and 5Ta+%e 17. In the study area o* $a%monirhat, the avera&e a&e o* the -ontra-t &ro ers as 39 years and )/2 o* the *armers had se-ondary edu-ation and their *arm si,e as 2.'1 ha1*arm. The -ontra-t &ro ers had 1... he-tares o* tota% -u%tivated %and and they produ-e mai,e in '.0) he-tares o* %and, hi-h as ..2 o* the tota% -u%tivated %and. The avera&e mai,e -ontra-t &ro in& %and as '..' he-tares, hi-h as 932 o* the mai,e -u%tivated %and. The non( -ontra-t &ro ers o* $a%monirhat ere on avera&e 33 years o%d and 442 o* the *armers had se-ondary edu-ation and the *arm si,e as 1.)3 he-tares. Their tota% -u%tivated %and as 1.3. ha1*arm and mai,e produ-tion %and as in '.3/ ha1*arm, hi-h as 492 o* the tota% -u%tivated %and 5Ta+%e 17. <onsiderin& a%% -ontra-t &ro ers 5<87 and non(-ontra-t &ro ers 5B<87, it as *ound that <8 and B<8 *armers4 avera&e a&e as 30 and 3. years. 3orty(ei&ht per -ent o* <8 *armers had se-ondary and 342 o* B<8 *armers had primary edu-ation. Avera&e *arm si,e o* <8 and B<8 *armers ere 1.4 and 1.. he-tares respe-tive%y and +oth types o* *armers produ-ed mai,e in '.. he-tares o* %and. <ompare to B<8 *armers 5)42 o* the -u%tivated %and7, more <8 *armers used their -u%tivated %ands 5/)27 *or mai,e produ-tion. The <8 *armers produ-ed mai,e on '.) he-tares o* %and, hi-h as 9)2 o* the mai,e -u%tivated area 5Ta+%e 17. Contract Growing System in "inaj&ur It as *ound that on avera&e, -ontra-t &ro ers have started mai,e produ-tion under "ipshi!ha B8; *rom %ast 3 years. >i&hty per -ent o* the *armers de-ided to invo%ve in -ontra-t &ro in& +y the motivation o* "ipshi!ha. T enty per -ent o* the *armers invo%ved themse%ves in the system *rom their o n de-ision. The important reason *or a--eptin& the -ontra-t &ro in& system as that it he%ped the *armers in investin& money in mai,e produ-tion. 3armers ere *a-in& pro+%ems o* -ash money durin& p%antin& and inter-u%tura% operations. There*ore, the system he%ped them a %ot in that time. This no dou+t en-oura&ed the *armers to intensi*y mai,e -u%tivation. Binety(si@ per -ent o* the *armers mentioned that time%y avai%a+i%ity o* inputs at reasona+%e pri-e as another reason +ehind the -ontra-t &ro in& system. A+out 022 *armers e@pressed their opinion that avai%a+i%ity o* &ood qua%ity seeds and adu%teration *ree *erti%i,ers ere other reasons *or a--eptin& the -ontra-t &ro in& system. A%% *armers ere satis*ied ith the *a-i%ities and servi-es provided +y "ipshi!ha. A%% *armers mentioned that "ipshi!ha is a &ood or&ani,ation *or mana&in& -ontra-t &ro in& system *or mai,e produ-tion and they %i!e to -ontinue to produ-e mai,e in the *o%%o in& years.

It as revea%ed that every -ontra-t &ro ers in the study area &ot the same amount o* input %i!e seed, Erea, T6=, M=, 8ypsum, Bora@ and Cin- on the +asis o* their %and si,e. >@-ept those inputs they app%ied .''0 !&1ha -o dun& on an avera&e on mai,e %and. Bon(-ontra-t &ro ers used seed 19./1 !&1ha, -o dun& 1'19/ !&1ha, Erea 3/) !&1ha, T6= 10' !&1ha, M= 1). !&1ha, 8ypsum 0' !&1ha, Bora@ 2 !&1ha and Cin- 3 !&1ha. <omparin& the quantity o* input used +y <8 and B<8 *armers it as revea%ed that -ontra-t &ro ers used hi&her amount o* seed 5227, Erea 54327, T6= 53927, M= 54327, 8ypsum 59/27, Bora@ 5/9'27 and Cin543927 and %o er amount o* -o dun& 53127 -ompare to non(-ontra-t &ro ers 5Ta+%e 27. >stimated -ost o* mai,e produ-tion +y -ontra-t and non(-ontra-t &ro ers ere sho ed in the Ta+%e 3. The study revea%ed that *or produ-in& mai,e -ontra-t &ro ers spend T! )2.11ha *or human %a+our, T! 23191ha *or anima% and me-hani-a% po er, T! 2.))1ha *or seed, T! 1/191ha *or -o dun&, T! 31441ha *or urea, T! 4/111ha *or T6=, T! 31291ha *or M=, T! )091ha *or 8ypsum, T! /4)1ha *or Bora@, T! 92)1ha *or Cin-, T! 42241ha *or irri&ation, T! .'.1ha *or she%%in&. The interest on operatin& -apita% as T! 4.91ha and %and used -ost as T! 40'.1ha. <ost o* mai,e produ-tion +y non(-ontra-t &ro ers ere T! /)0)1ha *or human %a+our, T! 2/4.1ha *or anima% and me-hani-a% po er, T! 2.411ha *or seed, T! 23911ha *or -o dun&, T! 21021ha *or urea, T! 34111ha *or T6=, T! 23/21ha *or M=, T! 3/11ha *or 8ypsum, T! .01ha *or Bora@, T! 12/1ha *or Cin-, T! 21/1ha *or inse-ti-ide, T! 4')'1ha *or irri&ation, T! ..31ha *or she%%in&. The interest on operatin& -apita% as T! 4)11ha and %and used -ost as T! 4)131ha. <ost o* seed 5127, urea 54327, T6= 53)27, M= 53227, 8ypsum 5//27, Bora@ 5.1927, Cin- 5)).27, irri&ation 5427 ere hi&her and -ost o* human %a+our 52'27, anima% and me-hani-a% po er 51227, <o dun& 53227, 6he%%in& 5027 ere %o er in mai,e produ-tion +y -ontra-t &ro ers -ompare to non(-ontra-t &ro ers. The &ross -ost o* mai,e produ-tion o* -ontra-t &ro ers as T! 3)2201ha on *u%% -ost +asis and T! 239..1ha on -ash -ost +asis 5Ta+%e 47. =er he-tare yie%d o* mai,e as 9../ !&. 8ross return *rom mai,e as T! )34)/1ha. 8ross mar&in as T! 1922.1ha on *u%% -ost +asis and T! 20).01ha. The estimated B<R as 1.)2 o* *u%% -ost +asis and 2.24 on -ash -ost +asis. This e-onomi-s indi-ated that to produ-e per !& mai,e -ontra-t &ro ers had to spend T! 4.'3 on *u%% -ost and T! 2..3 on -ash -ost +asis and &ot T! /.'0 as &ross return, hi-h %eaded to &ross mar&in o* T! 2.'. on *u%% -ost +asis and T! 3.3/ on -ash -ost +asis. The tota% -ost o* mai,e produ-tion o* non(-ontra-t &ro er as 32909 T!1ha on *u%% -ost +asis and T! 22)4/1ha o* -ash -ost +asis. Their mai,e produ-tion yie%d as .941 !&1ha. They &ot return va%ued T! 4/)/11ha and &ross mar&in as T! 13//31ha o* *u%% -ost +asis and T! 24'1)1ha on -ash -ost +asis. The B<R o* mai,e produ-tion as 1.42 on *u%% -ost and 2.'. on -ash -ost +asis. <omparin& ith the non(-ontra-t &ro ers the -ontra-t &ro er &ross -ost as hi&her +y .2 on *u%% -ost +asis and /2 on -ash -ost +asis. <ontra-t &ro er4s yie%d o* mai,e as hi&her +y 122, &ross return as 1)2 and &ross mar&in as 332 o* *u%% -ost +asis and 232 on -ash -ost +asis -ompare to non(-ontra-t &ro ers. B<R o* -ontra-t &ro ers as hi&her +y .2 on *u%% -ost +asis and 92 on -ash -ost +asis. The resu%ts indi-ated that pro*ita+i%ity o* mai,e produ-tion +y -ontra-t &ro in& system in "ina#pur distri-t as hi&her than non(-ontra-t &ro ers. Contract Growing System in (a monirhat It as *ound that on an avera&e -ontra-t &ro ers have started mai,e produ-tion the under "oe% A&ro Industry *rom 2 years. 032 *armers ere invo%ved in -ontra-t &ro in& +y the se%*

de-ision. .2 *armers ere de-ided to invo%ve +y the motivation o* "oe% A&ro Industry. <ent per -ent *armers mentioned that they invo%ved in -ontra-t &ro in& mai,e produ-tion, +e-ause they *e%t that it as very he%p*u% in mai,e produ-tion hen there as a shorta&e o* money in hand. It so%ved this pro+%em +y &ivin& -ash money to the *armers. 3armers -ou%d use inputs satis*a-tori%y hen they have enou&h money to spend *or mai,e produ-tion. 6ame per-enta&e o* *armer mentioned that -ontra-t &ro in& system &ive the sa%e ensure *a-i%ity, hi-h redu-e the ris! o* mai,e produ-tion. 6a%e ensure a%so en-oura&e the *armer to produ-e more mai,e +y investin& more money and %and. 9)2 o* *armers opinioned that, they &et moister measure *a-i%ity. Measurin& the moister per-enta&e they &et satis*a-tory and reasona+%e pri-e on the +asis o* moister per-enta&e. This *a-i%ity as not avai%a+%e in the out side the or&ani,ation. 92 2 *armers mentioned that &ettin& trainin& *a-i%ity and -rop monitorin& *a-i%ity as another reason o* invo%vement. 1''2 *armers ere satis*ied a+out the pri-e they &et *rom the "oe% A&ro Industry. 1''2 &ro ers &ot the trainin& *rom "oe% and the method o* mai,e -u%tivation as the su+#e-t o* the trainin& and duration o* the trainin& as one day. It as revea%ed that 1''2 *armers ere satis*ied on the *a-i%ity and servi-e they &et *rom "oe% A&ro Industry. But amon& them 9'2 *armer e@pe-ted more *a-i%ity *rom "oe% A&ro Industry %i!e &ivin& *erti%i,er, -ash or !ind support *or other -rop produ-tion et-. A%% *armers opinioned that "oe% A&ro Industry as a &ood or&ani,ation *or mana&in& -ontra-t &ro in& system mai,e produ-tion, -ontra-t &ro in& it se%* as a &ood system and they i%% -ontinue to produ-e mai,e in the ne@t *ive years under -ontra-t &ro in& system or&ani,ed +y "oe% A&ro Industry. <ontra-t &ro ers under "oe% A&ro Industry &ot the same amount o* seed, and inse-ti-ide on the +asis o* their %and si,e. >@-ept those inputs, *armers used -o dun& 394) !&1ha, Erea 204 !&1ha, T6= 2)/ !&1ha, M= 243 !&1ha, 8ypsum 1/. !&1ha, Bora@ 11 !&1ha, Cin- 12 !&1ha. In the same study area, *or produ-in& mai,e non(-ontra-t &ro ers used seed 2' !&1ha, -o dun& 4004 !&1ha, Erea 31' !&1ha, T6= 2'4 !&1ha, M= 1.. !&1ha, 8ypsum 119 !&1ha, Bora@ . !&1ha and Cin- 9 !&1ha. <omparin& the quantity o* input used +y <8 and B<8 *armers it as revea%ed that -ontra-t &ro ers used hi&her amount o* T6= 52)27, M= 53927, 8ypsum 54227, Bora@ 5)/27 and Cin- 5)227 and %o er amount o* -o dun& 52327, and Erea 5)27 -ompare to non(-ontra-t &ro ers. The study revea%ed that *or produ-in& mai,e -ontra-t &ro ers spend T! /1.)1ha *or human %a+our, T! 231.1ha *or anima% and me-hani-a% po er, T! 20/41ha *or seed, T! 0241ha *or -o dun&, T! 1.//1ha *or Erea, T! 4/'11ha *or T6=, T! 34'.1ha *or M=, T! /.'1ha *or 8ypsum, T! 4)01ha *or Bora@, T! 49.1ha *or Cin-, T! 29).1ha *or irri&ation, T! 1'//1ha *or she%%in&. The interest on operatin& -apita% as T! )0)1ha and %and used -ost as T! T! )1'91ha. <ost o* mai,e produ-tion +y non(-ontra-t &ro ers ere T! /3)31ha *or human %a+our, T! 23)91ha *or anima% and me-hani-a% po er, T! 29001ha *or seed, T! 12401ha *or -o dun&, T! 19/21ha *or Erea, T! 3/./1ha *or T6=, T! 24.31ha *or M=, T! 4.21ha *or 8ypsum, T! 2041ha *or Bora@, T! 3211ha *or Cin-, T! 3401ha *or inse-ti-ide, T! 10921ha *or irri&ation, T! 91'1ha *or she%%in&. The interest on operatin& -apita% as T! 3991ha and %and used -ost as T! 49/31ha. <ost o* seed 5227, T6= 52)27, M= 53927, 8ypsum 54227, Bora@ 5)/27, Cin- 5)227, irri&ation 54427 6he%%in& 53227 ere hi&her and -ost o* human %a+our 5327, anima% and me-hani-a% po er 5227, <o dun& 52/27, Erea 5)27, ere %o er in mai,e produ-tion +y -ontra-t &ro ers -ompare to non(-ontra-t &ro ers 5Ta+%e /7. The &ross -ost o* mai,e produ-tion o* -ontra-t &ro ers as T! 344301ha on *u%% -ost +asis and T! 2)1''1ha on -ash -ost +asis. =er he-tare yie%d o* mai,e as ./1) !&. 8ross return *rom mai,e as T! )929/1ha. 8ross mar&in as T! 2394/1ha on *u%% -ost +asis and T! 3319)1ha. The estimated B<R as 1./0 o* *u%% -ost +asis and 2.32 on -ash -ost +asis. This

e-onomi-s indi-ated that to produ-e per !& mai,e -ontra-t &ro ers had to spend T! 4./' on *u%% -ost and T! 3.3) on -ash -ost +asis and &ot T! ../0 as &ross return, hi-h %eaded to &ross mar&in o* T! 3.'0 on *u%% -ost +asis and T! 4.34 on -ash -ost +asis 5Ta+%e .7. The -ost o* mai,e produ-tion o* non(-ontra-t &ro ers ere T! 3'3401ha on *u%% -ost +asis and T! 104'91ha o* -ash -ost +asis. Their mai,e produ-tion yie%d as /'4/ !&1ha. They &ot 8ross return va%ued T! 442431ha and &ross mar&in as T! 139041ha o* *u%% -ost +asis and T! 2493)1ha on -ash -ost +asis. The B<R o* mai,e produ-tion ere 1.4/ on *u%% -ost +asis and 2.29 on -ash -ost +asis 5Ta+%e .7. <omparin& ith the non(-ontra-t &ro ers the -ontra-t &ro er &ross -ost as hi&her +y 132 on *u%% -ost +asis and 202 on -ash -ost +asis. <ontra-t &ro er4s yie%d o* mai,e as hi&her +y 2/2, &ross return as 322 and &ross mar&in as .22 o* *u%% -ost +asis and 342 on -ash -ost +asis -ompare to non(-ontra-t &ro ers. B<R o* -ontra-t &ro ers as hi&her +y 1/2 on *u%% -ost +asis and 22 on -ash -ost +asis. The resu%ts indi-ated that pro*it o* mai,e produ-tion +y -ontra-t &ro in& system in $a%monirhat distri-t as hi&her than non(-ontra-t &ro ers 5Ta+%e .7. Com&arative Profitabi ity of CG and )CG <ontra-t &ro ers used seed 10 !&1ha, -o dun& )293 !&1ha, Erea 300 !&1ha, T6= 2)0 !&1ha, M= 23) !&1ha, 8ypsum 1./ !&1ha, Bora@ 13 !&1ha, Cin- 13 !&1ha. In the same study area, *or produ-in& mai,e non(-ontra-t &ro ers used seed 10 !&1ha, -o dun& .9.9 !&1ha, Erea 341 !&1ha, T6= 10/ !&1ha, M= 1// !&1ha, 8ypsum 1'3 !&1ha, Bora@ 4 !&1ha and Cin- ) !&1ha. <omparin& the quantity o* input used +y <8 and B<8 *armers it as revea%ed that -ontra-t &ro ers used hi&her amount o* Erea 51.27, T6= 53227, M= 54227, 8ypsum 5.227, Bora@ 52'127 and Cin- 51/327 and %o er amount o* -o dun& 53327 -ompare to non( -ontra-t &ro ers 5Ta+%e 97. The study revea%ed that *or produ-in& mai,e -ontra-t &ro ers spend T! )./41ha *or human %a+our, T! 23191ha *or anima% and me-hani-a% po er, T! 29/01ha *or seed, T! 12301ha *or -o dun&, T! 23031ha *or Erea, T! 4/'/1ha *or T6=, T! 329'1ha *or M=, T! /3.1ha *or 8ypsum, T! )441ha *or Bora@, T! /4'1ha *or Cin-, T! 34.91ha *or irri&ation, T! 0'31ha *or she%%in&. The interest on operatin& -apita% as T! 4011ha and %and used -ost as T! )')/1ha. <osts o* mai,e produ-tion +y non(-ontra-t &ro ers ere T! /49.1ha *or human %a+our, T! 2)191ha *or anima% and me-hani-a% po er, T! 29111ha *or seed, T! 19.91ha *or -o dun&, T! 2'4)1ha *or Erea, T! 3)201ha *or T6=, T! 24121ha *or M=, T! 41'1ha *or 8ypsum, T! 1.)1ha *or Bora@, T! 2121ha *or Cin-, T! 2.)1ha *or inse-ti-ide, T! 31311ha *or irri&ation, T! .901ha *or she%%in&. Their interest on operatin& -apita% as T! 4231ha and %and used -ost as T! 4//91ha. <ost o* seed 5227, Erea 51.27, T6= 53127, M= 53/27, 8ypsum 5))27, Bora@ 521127, Cin- 52'227, irri&ation 51127 6he%%in& 51427 ere hi&her and -ost o* human %a+our 51127, anima% and me-hani-a% po er 5927, <o dun& 53427 ere %o er in mai,e produ-tion +y -ontra-t &ro ers -ompare to non( -ontra-t &ro ers 5Ta+%e 07. The &ross -ost o* mai,e produ-tion o* -ontra-t &ro ers as T! 34.091ha on *u%% -ost +asis and T! 24)441ha on -ash -ost +asis. =er he-tare yie%d o* mai,e as 9143 !&. 8ross return *rom mai,e as T! )/'0'1ha. 8ross mar&in as T! 212021ha on *u%% -ost +asis and T! 31)4/1ha. The estimated B<R as 1./1 o* *u%% -ost +asis and 2.20 on -ash -ost +asis. This e-onomi-s indi-ated that to produ-e per !& mai,e -ontra-t &ro ers spend T! 4.34 on *u%% -ost and T! 3.'. on -ash -ost +asis and &ot T! /.0. as &ross return, hi-h %eaded to &ross mar&in o* T! 2./3 on *u%% -ost +asis and T! 3.0' on -ash -ost +asis.

The -ost o* mai,e produ-tion o* non(-ontra-t &ro ers as T! 31./)1ha on *u%% -ost +asis and T! 211)11ha o* -ash -ost +asis. Their mai,e produ-tion yie%d as .'43 !&1ha. The 8ross return as T! 4))311ha and &ross mar&in as T! 13.//1ha o* *u%% -ost +asis and T! 243.01ha on -ash -ost +asis. The B<R o* mai,e produ-tion ere 1.43 on *u%% -ost +asis and 2.1) on -ash -ost +asis. <omparin& ith the non(-ontra-t &ro ers the -ontra-t &ro er &ross -ost as hi&her +y 1'2 on *u%% -ost +asis and 1/2 on -ash -ost +asis. <ontra-t &ro er4s yie%d o* mai,e as hi&her +y 1/2, &ross return as 232 and &ross mar&in as ))2 o* *u%% -ost +asis and 202 on -ash -ost +asis -ompare to non(-ontra-t &ro ers. B<R o* -ontra-t &ro ers as hi&her +y 122 on *u%% -ost +asis and /2 on -ash -ost +asis. The resu%ts indi-ated that pro*it o* mai,e produ-tion +y -ontra-t &ro in& system as hi&her than mai,e produ-tion +y non(-ontra-t &ro ers. Prob ems of Maize Production under CG and )CG 'armers There ere many pro+%em o* -ontra-t &ro in& system and as e%% as -ontra-t &ro ers. The ran! one pro+%em o* -ontra-t &ro in& system as %ate supp%y o* input in -ash or !ind. 0'2 *armers mentioned this pro+%em. 6ometime due to some mana&eria% mismana&ement *armers &ot seed and *erti%i,er in so %ate that -aused %o yie%d. 9)2 *armers mentioned that some times they &ot unsatis*a-tory pri-e *rom the -ontra-t or&ani,ation. $a-! o* -ash money as one o* the ma#or pro+%ems *a-ed +y 0)2 non(-ontra-t &ro ers. To so%ve this pro+%em *armer *e%t interest to invo%ve in -ontra-t &ro in& system. They *e%t that it as the +est so%ution o* %a-! o* -ash money. Adu%teration o* seed and *erti%i,er as the se-ond ran!ed pro+%em, hi-h as mentioned +y 022 *armers. Hy+rid mai,e produ-tion as very sensitive to the variety. 3armers -ou%d not produ-e mai,e seed +y their o n, they +ou&ht it *rom the mar!et. 6ome time some +usinessman adu%terated &ood qua%ity seed ith %o qua%ity and so%d it to the *armer. 3armers &ot -heated *rom them and that hampered the e@pe-ted yie%d. To +e sure a+out the qua%ity o* seed, *armers *e%t that, -ontra-t &ro in& system may the +est ay. In this ay the -ontra-t or&ani,ation tried to &ive the +est qua%ity o* seed to &et the +est yie%d that need. "ryin& *a-i%ity as an a-ute pro+%em o* mai,e &ro ers o* many areas. 0)2 2 o* "ina#pur mai,e *armers *a-ed this pro+%em *rom a %on& time. They did not have enou&h p%a-es to dry their mai,e. Be-ause o* this reason they so%d their mai,e *rom the *ie%d in hi&h moister -ontent in a %o pri-e. Conc usions This study revea%ed that *armer produ-e mai,e in t o !ind o* -ontra-t system under the -on-ept o* -ontra-t &ro in& system. They ere <ontra-t produ-tion and another one as -ontra-t +uyin&. A B8; "ipshi!ha -ontra-ts ith *armers +y &ivin& produ-tion inputs to *or produ-in& mai,e. Another one is "oe% A&ro Industry ho -ontra-t ith *armer to +uy mai,e +y &ivin& them produ-tion support in -ash and !ind. To *ind out the pro*ita+i%ity o* -ontra-t &ro in& system a -omparative study as underta!en ith non(-ontra-t &ro ers. It as *ound that the &ross -ost o* mai,e produ-tion +y <8 as T! 34.091ha on *u%% -ost +asis and T! 24)441ha on -ash -ost +asis, hi-h ere 1'2 and 1/2 hi&her than B<8. Fie%d o* mai,e as a%so 1/2 hi&her in <8 and it as 9143 !&1ha. 8ross return o* <8 system as T! )/'0'1ha, hi-h as 232 hi&her than B<8. 8ross mar&in as T! 212021ha on *u%% -ost +asis and T! 31)4/1ha, +ut non(-ontra-t &ro ers &ross mar&in as ))2 and 202 %o er than <8. The estimated B<R as 1./1 on *u%% -ost +asis and 2.20 on -ash -ost +asis, hi-h ere 122 and /2 hi&her than B<8. These indi-ators o* pro*ita+i%ity indi-ated that mai,e produ-tion +y

-ontra-t &ro in& system &ives hi&her pro*ita+i%ity -ompare to non(-ontra-t &ro in&. $ate supp%y o* input, unsatis*a-tory pri-e, %a-! o* -ash money, adu%teration o* seed and *erti%i,er, %a-! o* dryin& *a-i%ity ere the main pro+%ems that the -ontra-t and non(-ontra-t *armers *a-ed. More resear-h as needed to *ormu%ate an e**e-tive and e**i-ient -ontra-t &ro in& system *or the produ-tion o* mai,e and other -rops. 8overnment shou%d ta!e ne-essary a-tion to monitor the terms and a-tivities o* -ontra-t or&ani,ation and -ontra-t &ro ers so that &ro ers -an &et the satis*a-tory share and not e@p%oit +y the or&ani,ation. Mai,e produ-tion shou%d +e in-rease +y e@pandin& -onta-t &ro in& system throu&h out -ountry. Po icy Guide ine GBo po%i-y ma!ers are -on-ernin& a+out to ensure the satis*a-tory pri-e o* the -rop to the *armers. $on& mar!etin& -hanne% redu-es the produ-er share. To in-rease the produ-er share o* mar!etin& -hanne% needs to +e short. <ontra-t &ro in& system is one o* ays, hi-h shorten the mar!etin& -hanne% &ives *armers a satis*a-tory pri-e. 6o &overnment shou%d ta!e initiative to en-oura&e *armers in produ-in& -rops under -ontra-t &ro in& system. 6ide +y side more initiative shou%d +e ta!en to he%p and en-oura&e the investors to start or&ani,in& the *armers and produ-e -rops in -ontra-t +asis. G3or deve%opin& a &ood and e**e-tive -ontra-t system, more resear-h shou%d +e underta!en on di**erent methods and pro*ita+i%ity o* -ontra-t &ro in& system. G8overnment shou%d monitor the -ontra-t or&ani,ation time to time so that they -an not &et -han-e to e@p%oit the *armers. Maintainin& satis*a-tory pri-e o* mai,e shou%d ensure produ-er4s share. G8overnment shou%d a%so monitor the interest rate or servi-e -har&e o* the -ontra-t or&ani,ation so that they -an *o%%o the &overnment order a+out the +an! interest rate o* a&ri-u%tura% %oan espe-ia%%y mai,e produ-tion %oan. GIn the -ontra-t &ro in& system an or&ani,ation shou%d &ive more in !ind support instead o* -ash support to the *armers, so that they -an proper%y use the inputs and the *a-i%ities they &et.

Ta+%e 1 H 6o-io(e-onomi- status o* samp%e *armers o* the study areas <hara-teristi-s 1. 3armers4 A&e 5year7H 2. >du-ation 527H I%%iterate <an si&n on%y =rimary 6e-ondary Hi&her se-ondary A+ove Hi&her se-ondary Tota% 3. $and ; nership 5ha1*arm7H 3irm si,e ; ned -u%tivated %and Tota% -u%tivated %and Mai,e -u%tivated %and 2 o* tota% -u%tivated %and $and under <8 6ystem 2 o* <8 under mai,e area "ina#pur <8 B<8 4' 42 13 . 4' 4' ' ' 1'' '.94 '.3) '..3 '.3. )3 '.20 99 2' 1' 2) 3' ) 1' 1'' 1.9/ 1.42 1..1 '.0. /' '.'' ' $a%monirhat <8 B<8 39 33 / ' 22 )/ / 11 1'' 2.'1 1.91 1... '.0) .. '..' 93 13 10 44 10 / ' 1'' 1.)3 1.1/ 1.3. '.3/ 49 '.'' ' A%% <8 30 0 3 31 49 3 / 1'' 1.4 1.1 1.2 '.. /) '.)' 9) B<8 3. 1/ 14 34 24 / ) 1'' 1.. 1.3 1.) '.. )4 '.' '

BoteH <8I <ontra-t 8ro ers, B<8IBon(<ontra-t 8ro ers

Ta+%e 2. Inputs used *or mai,e produ-tion in "ina#pur distri-t Inputs 6eed 5!&1ha7H <o dun& 5!&1ha7H 3erti%i,er 5!&1ha7H Erea T6= M= 8ypsum Bora@ Cin<8 10.'' .''0 )24 2/2 22) 1/. 1) 1) B<8 19./1 1'19/ 3/) 10' 1). 0' 2 3 "i**eren-e 527 2 (31 43 39 43 9/ /9' 439

Ta+%e 3. <ost o* mai,e produ-tion o* "ina#pur *armers <ost Items Human $a+ourH <8 3.)) 1)1/ )2.1 )04 1.24 2319 2.)) 1/19 3144 4/11 3129 )09 /4) 92) ' 4224 .'. 4.9 40'. 3)220 3'322 239.. B<8 2'13 4)92 /)0) 004 1/)2 2/4. 2.41 2391 2102 3411 23/2 3/1 .0 12/ 21/ 4')' ..3 4)1 4)13 32909 2939) 22)4/ "i**eren-e 527 9. (/. (2' (4' 4 (12 1 (32 43 3) 32 // .19 )). (1'' 4 (0 / 0 . / /

Anima% J Me-h. po erH

3ami%y Hired Tota% 3ami%y Hired Tota%

6eed <o dun& 3erti%i,erH Erea T6= M= 8ypsum Bora@ CinInse-ti-ides Irri&ation 6he%%in& Interest on operatin& -apita% $and use -ost Tota% <ost Tota% Karia+%e <ost Tota% <ash -ost

Ta+%e 4. =ro*ita+i%ity o* Mai,e =rodu-tion o* "ina#pur "istri-ts Items Fie%d 5!&1ha7 8ross Return 5T!1ha7H 8ross <ost 5T!1ha7H 3u%% -ost +asis <ash -ost +asis 8ross Mar&in 5T!1ha7H 3u%% -ost +asis <ash -ost +asis Bene*it <ost RatioH 3u%% -ost +asis <ash -ost +asis <ost 5T!1!&7H 3u%% -ost +asis <ash -ost +asis Return 5T!1!&7 8M 5T!1!&7H 3u%% -ost +asis <ash -ost +asis <8 9../ )34)/ 3)220 239.. 1922. 20).0 1.)2 2.24 4.'3 2..3 /.'0 2.'. 3.3/ B<8 .941 4/)/1 32909 22)4/ 13//3 24'1) 1.42 2.'. 4.23 2.01 ).04 1..1 3.'3 "i**eren-e 527 12 1) . / 33 23 . 9 () (/ 3 21 11

Ta+%e ). Inputs used *or mai,e produ-tion in $a%monirhat distri-t

Inputs 6eed 5!&1ha7H <o dun& 5!&1ha7H 3erti%i,er 5!&1ha7H Erea T6= M= 8ypsum Bora@ Cin-

<8 2' 394) 204 2)/ 243 1/. 11 12

B<8 2' 4004 31' 2'4 1.. 119 . 9

"i**eren-e 527 ' (23 () 2) 39 42 )/ )2

Ta+%e /. <ost o* mai,e produ-tion o* $a%monirhat *armers <ost Items Human %a+ourH 3ami%y Hired Tota% Anima% J Me-hani-a% po erH 3ami%y Hired Tota% 6eedH <o dun&H 3erti%i,erH Erea T6= M= 8ypsum Bora@ CinInse-ti-ides Irri&ation Mai,e she%%in& Transportation Interest on operatin& -apita% $and use -ost Tota% <ost Tota% Karia+%e <ost Tota% <ash -ost <8 2'00 4'./ /1.) /34 1/93 231. 20/4 024 1.// 4/'1 34'. /.' 4)0 49. 4/0 29). 1'// )0) )'2 )19' 34430 202)0 2)1'' B<8 399' 24.2 /3)3 )/1 1.0. 23)9 2900 1240 19/2 3/./ 24.3 4.2 204 321 340 1092 91' ' 399 49/3 3'340 2)49/ 104'9 "i**eren-e 527 (4/ /) (3 13 (/ (2 2 (2/ () 2) 39 42 )/ )2 34 44 32 20 . 13 14 20

Ta+%e .. =ro*ita+i%ity o* mai,e produ-tion o* $a%monirhat *armers Items Fie%d 5!&1ha7 =ri-e 5T!1!&7 8ross Return 5T!1ha7H 8ross <ost 5T!1ha7H 3u%% -ost +asis <ash -ost +asis 8ross mar&in 5T!1ha7H 3u%% -ost +asis <ash -ost +asis Bene*it <ost RatioH 3u%% -ost +asis <ash -ost +asis <ost 5T!1!&7H 3u%% -ost +asis <ash -ost +asis Return 5T!1!&7 8M 5T!1!&7H 3u%% -ost +asis <ash -ost +asis <8 ./1) ../0 )929/ 34430 2)1'' 2394/ 3319) 1./0 2.32 4./' 3.3) ../0 3.'0 4.34 B<8 /'4/ ..3/ 44243 3'340 104'9 13904 2493) 1.4/ 2.29 ).2' 3.3' ..3/ 2.1) 4.'/ "i**eren-e 527 2/ ) 32 13 20 .2 34 1/ 2 (12 2 ) 44 .

Ta+%e 9. Inputs used *or mai,e produ-tion +y <8 and B<8 *armers Inputs 6eed 5!&1ha7H <o dun& 5!&1ha7H 3erti%i,er 5!&1ha7H Erea T6= M= 8ypsum Bora@ Cin<8 10 )293 300 2)0 23) 1./ 13 13 B<8 10 .9.9 341 10/ 1// 1'3 4 ) "i**eren-e 527 ' (33 1. 32 42 .2 2'1 1/3

Ta+%e 0. <omparative -ost o* mai,e produ-tion +et een <8 and B<8 <ost Items Human %a+ourH 3ami%y Hired Tota% Anima% J Me-hani-a% po erH 3ami%y Hired Tota% 6eed Manure 5<o dun&7 3erti%i,erH Erea T6= M= 8ypsum Bora@ CinInse-ti-ides Irri&ation Mai,e she%%in& Transportation Interest on operatin& -apita% $and use -ost Tota% <ost Tota% Karia+%e <ost Tota% <ash -ost <8 29)2 2012 )./4 /1/ 1.'2 2319 29/0 1230 2303 4/'/ 329' /3. )44 /4' 2)/ 34.9 0'3 324 401 )')/ 34.09 20.42 24)44 B<8 2943 3/44 /49. 9'2 1.1. 2)19 2911 19.9 2'4) 3)20 2412 41' 1.) 212 2.) 3131 .90 ' 423 4//9 31./) 2.'0. 211)1 "i**eren-e 527 '.31 (2' (11 (23 (1 (9 2 (34 1. 31 3/ )) 211 2'2 (. 11 14 1/ 9 1' 1' 1/

Ta+%e 1'. <omparative pro*ita+i%ity o* mai,e produ-tion o* <8 and B<8 *armers Items Fie%d 5!&1ha7 8ross Return 5T!1ha7H 8ross <ost 5T!1ha7H 3u%% -ost +asis <ash -ost +asis 8ross Mar&in 5T!1ha7H 3u%% -ost +asis <ash -ost +asis Bene*it <ost RatioH 3u%% -ost +asis <ash -ost +asis <ost 5T!1!&7H 3u%% -ost +asis <ash -ost +asis Return 5T!1!&7 8M 5T!1!&7H 3u%% -ost +asis <ash -ost +asis <8 9143 )/'0' 34.09 24)44 21202 31)4/ 1./1 2.20 4.34 3.'. /.0. 2./3 3.0' B<8 .'43 4))31 31./) 211)1 13.// 243.0 1.43 2.1) 4.// 3.'9 /.). 1.01 3.49 "i**eren-e 527 1/ 23 1' 1/ )) 20 12 / (. ' / 39 12