The study analyses data collected from 139 non-contract and 144 contract potato growers from four districts of West Bengal in the year 2008. It was found that the contract farmers were more experienced and had more years of schooling and social participation. The average farm harvest price of Atlantic potatoes (the contract variety) was much higher than the K. Jyoti (standard variety). The cost of cultivation was higher for Atlantic (Rs.74,909/ha) as compared to K. Jyoti (Rs. 70,705/ha). Contract farming gave good returns of around Rs. 15,000 per hectare whereas non-contract farmers as well as K. Jyoti contract farmers incurred losses. A Data Envelopment Analysis for technical efficiency estimation indicates that the contract method of production was more efficient than non-contract production. Further the scale inefficiency was primarily responsible for overall technical inefficiency as compared to the technical inefficiency. The majority of the non-contract as well as contract farmers were operating under sub-optimal scale.
