Decomposition model to compare the productivity difference between contract and non-contract chilli farmers in southern Tamil Nadu Divya K1*, Prahadeeshwaran M2, Malarkodi M3, Ravikumar R1, Vijayabhama M1 1Department of Basic and Social Sciences, Forest College and Research Institute, Mettupalayam, 641301, Tamil Nadu, India 2Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India 3Directorate of Agri-Business Development, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India *Email for correspondence: divyatnau@gamil.com
Online published on 21 February, 2022. Abstract A study was conducted to understand the productivity differences between contract (adopters of GAP technologies) and non-contract farmers (non-adopters of GAP technologies). The study covered three major chilli growing districts in southern Tamil Nadu. The average return to contract farmers was Rs 1,20,174.37 and non-contract farmers was Rs 80,561.25 per hectare of chillies. The parameters governing the input-output relations in the case of contract farms were different from those of non-contract farms. The decomposition analysis showed that the per acre return of contract farming was 55.14 per cent higher than that of non-contract cultivation. The GAP technology component alone contributed 10.99 per cent to the total increase in output while the contribution of all other inputs was 44.15 per cent. The major contributor amongst all the inputs to the difference in returns was the cost incurred by the farmers for adopting the GAP technology (27.42%) followed by farmyard manure (19.00%). Irrigation and the chemical fertilizers were found to be positively contributing but at a lower level ie 1.59 and 0.14 per cent respectively. Land preparation and human labour (human days) were found to reduce the gross return. Top Keywords Good agricultural practices (GAP), Decomposition model, Productivity difference. Top |