Model Law for Contract Farming

Model Law for Contract Farming

News:

  1. Recently, the government has released a model law for contract farming: Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018

Important Facts:

  1. Aim:
  • Reduce farmer’s risk by providing an assured market for the produce
  • Encourage investment from agribusiness and food processing industries
  1. Key features:
  • Applicable to crops, livestock, dairy and poultry products
  • Provides for setting up State-level boards to promote contract farming, registering and recording agreements between buyers and sellers
  • Provides for setting up of a dispute settlement authority
  • Sponsors cannot develop any permanent structure on farmers’ land
  • Seeks to keep contract framing  outside the ambit of Agricultural Produce Marketing Committee (APMC) Act
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