Abstract:
This study was conducted for the following objectives: to determine the demographic profile of the respondents; to identify the sources/providers and farmers involved in the supply system; to determine the practices in the supply system by farmers and suppliers; to identify the benefits derive from the supply system; and to identify the problems in adopting supply system.
Twenty four suppliers and seventy farmers were interviewed randomly using a structured questionnaire. Data were organized and subjected to statistical computation using frequency and percentage.
Most of the suppliers are married and many of the farmers were single. The suppliers relatively had higher level of education than the farmers. Many of the suppliers in the study area were land owner suppliers and were relatives of the farmers they are supplying with input. All the respondent both farmers and suppliers adopted verbal agreement that is trust between both parties. Both parties were benefited in the supply system in terms of income. Although many of the farmers do not encounter problem with their supplier but still there were some who encountered problem like: the high cost of expenses on input supplies plus cash leaves a very small cash income to the farmers. Thus, forces them to be dependent to the suppliers. Suppliers encountered problem in the collection of farm input payment from the farmer especially when the farm business incurs losses.
