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Model Law for Contract Farming
News:
- 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:
- Aim:
- Reduce farmer’s risk by providing an assured market for the produce
- Encourage investment from agribusiness and food processing industries
- 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
