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Contract Farming of Medicinal Plants and its Impact on Farmers

. Ann Mary Jones a, Sony Vijayan b PhD Research Scholar, Department of Commerce and Management, Amrita School of Arts and Sciences, Amrita Vishwa Vidyapeetham University, Kochi-682024, India, ORCID ID-0000-0002-3787-4866 Associate Professor, Depar


Abstract

The Model Contract Farming Act,2018 is a revolutionary step which promises a win-win situation for both farmers and ayurvedic firms. By entering into contract farming agreement, it provides an assured income and market which promotes sustainable development for rural farmers. The Census method was used to collect data, and population size is 196 farmers. Statistical Package for Social Sciences (SPSS) software has been included in the study to analyse data by using tests like Factor analysis and Multiple regression methods. To measure the reliability of the questionnaire, Cronbach’s Alpha method was employed and obtained the value 0.862.The results indicated that the increased demand for local input, easy access to credit and incentives, assured market, access to local and reliable market and promote export quality are the significant factors which lead to the farmer's perception towards contract farming. This study will help for extensive cultivation of medicinal plants that will generate more job opportunities in rural areas and promote the sustainable development of rural farmers.

 

Keywords: Contract farming, Technology, Marketing, Sustainable development

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