The present investigation was undertaken with a view to studying the costs and returns structure by the contract and non-contract farmers under contract farming of bottle gourd. Primary data were collected for the agricultural year 2015-16. The cost concepts were used. The results of the study revealed that all types of incomes viz., gross income, family labour income, farm business income and net income were higher on the contract farms than on the non-contract farms. The net income per hectare from bottle gourd was 31.69 per cent higher on the contract farms as compared to the non-contract farms. The total costs were higher on contract farms than on non-contract farms. The net profit was higher on contract farms than on non-contract farms. Returns per rupee were higher on contract farms (` 1.82) than noncontract farms (`1.69).