References
[1]. Asokan S R. 2005. A perspective of contract farming with special reference to India. Indian Journal of Agricultural Marketing 19(2): 94–106.
[2]. Bhavani T A, Gulati Ashok and Roy Devesh. 2007. Structure of the Indian food processing industry: towards scaling up and consolidation.
[3]. IFPRI, New Delhi. Bharti V. 2008. Role of private sector in contract farming & direct procurement, GOI – FICCI Conference on APMC Model Rules.
[4]. Chen C, Chin M and Tseng W. 2006. Is contract farming more profitable and efficient than non contract farming:
[5]. Social impact of contract farming on farmers practicing contract farming. International Journal of Agricultural Sciences 9 (28): 4353–4355. Simmons P, Winters P and Patrick I. 2005.
|
ABSTRACT:
The rice export industry in India has traditionally relied on intermediary traders for the
procurement of rice from local farmers. However, this study explores the hypothesis that vertical
backward integration through contract farming can be a more profitable and sustainable option
for rice export companies. The research involves a comprehensive analysis of the economic
viability, quality control mechanisms, and supply chain transparency associated with both
traditional trader-based procurement and the vertically integrated contract farming model.
The study employs qualitative data collection methods. Financial analyses will be conducted to
compare the profit margins of companies adopting vertical backward integration versus those
relying on traders. Additionally, qualitative assessments will explore the quality assurance
mechanisms, supply chain transparency, and long-term sustainability of each model.
Preliminary findings should suggest that vertical backward integration offers export companies
the advantage of direct control over the cultivation process, enabling them to enforce stringent
quality standards. Furthermore, the elimination of intermediaries may result in cost efficiencies,
potentially leading to higher profit margins. |
International Journal of Social Science & Economic Research
