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:

2. Aim:

• Reduce farmer’s risk by providing an assured market for the produce
• Encourage investment from agribusiness and food processing industries

3. 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