Supply chain management aims at to link the producer and consumer, which includes traditional marketing channels. The present paper is intended to make aware about the model of supply chain management. This article helps in knowing concept of contract farming and relationship between processing firm and farmers in the villages around the plant. Study concludes that contract farming helpful to small farmers in the tuff times of product sale at the bulk production period. But on the other hand contract faming provides a more reliable, regular and timely sources of income to farmers. Broadly speaking, it suggested that for the successful implementation of contract farming there should be appropriate co-ordination between the farmers and buyers both acting in organized manner and advisable for both sides.