{"id":50135,"date":"2019-07-18T16:30:26","date_gmt":"2019-07-18T11:00:26","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=50135"},"modified":"2019-07-18T16:30:51","modified_gmt":"2019-07-18T11:00:51","slug":"answered-contact-farming-can-solve-indias-agricultural-and-food-security-issues-comment-discuss-model-contract-farming-act-2018-in-this-context","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-contact-farming-can-solve-indias-agricultural-and-food-security-issues-comment-discuss-model-contract-farming-act-2018-in-this-context\/","title":{"rendered":"[Answered] \u201cContact farming can solve India\u2019s agricultural and food security issues\u201d. Comment. Discuss Model Contract Farming Act, 2018 in this context."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Contextual introduction.
Body. <\/strong>Contract farming benefits. Salient features of Model Contract farming act, 2018.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

Contract farming can be defined as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer agrees to provide agreed quantities of a specific agricultural product.<\/p>\n\n\n\n

How\nContract farming can resolve agricultural issues and food security issues?<\/strong><\/p>\n\n\n\n

  1. Consistent Supply<\/strong>: In case of agri-processing level, it ensures consistent supply of\nagricultural produce with quality, at right time and lesser costresulting in a\nbetter control over the factors of production.<\/li>
  2. Better supply chain management<\/strong>: Assured supply aids Food processing industries in better supply chain\nmanagement. It reduce demand supply gap plugging supply side constraints. Contract\nfarming also enable the food processing industries to invest in the warehouses,\ncold storages and design the logistics in long term.<\/li>
  3. Beneficial to farmers<\/strong>: It makes small scale farming competitive. Small farmers can access\ntechnology, credit, marketing channels and information while lowering\ntransaction costs.Assured market for their produce at their doorsteps, reducing\nmarketing and transaction costs.<\/li>
  4. Reduce risks<\/strong>: It reduces the risk of production, price and marketing costs. Contract\nfarming can open up new markets which would otherwise be unavailable to small\nfarmers, thereby reducing intermediaries thus providing more options to\nfarmers.<\/li>
  5. Better quality production<\/strong>: Contract farming also ensures higher production of better quality,\nfinancial support in cash and \/or kind and technical guidance. It enable\noptimalutilisation of installed capacity, infrastructure and manpower, and\nrespond to food safety and quality concerns of the consumers.<\/li>
  6. Increase investment<\/strong>: It lead to direct private investment in agricultural activities as they\nfind it profitable. The farmers enter into contract production with an assured\nprice under term and conditions.<\/li><\/ol>\n\n\n\n

    With a\nview to integrate farmers with bulk purchasers including exporters, agro-\nindustries etc. budget for 2017-18 announced a \u201cModel Contract Farming Act\u201d. Salient\nfeatures of Model Contract Farming Act, 2018 are<\/strong>:<\/p>\n\n\n\n

    1. The Act lays special emphasis\non protecting the interests of the farmers, considering them as weaker of the\ntwo parties entering into a contract.<\/li>
    2. In addition to contract\nfarming, services contracts all along the value chain including pre-production,\nproduction and post-production have been included.<\/li>
    3. \u201cRegistering and Agreement\nRecording Committee\u201d or an \u201cOfficer\u201d for the purpose at district\/block\/ taluka\nlevel for online registration of sponsor and recording of agreement is provided.<\/li>
    4. Contracted produce is to be\ncovered under crop \/ livestock insurance.<\/li>
    5. Contract framing is to be\noutside the ambit of APMC Act.<\/li>
    6. No permanent structure can be\ndeveloped on farmers\u2019 land\/premises.<\/li>
    7. Promotion of Farmer Producer\nOrganization (FPOs)\/Farmer Producer Companies (FPCs) to mobilise small and\nmarginal farmers has been provided.<\/li>
    8. It ensure buying of entire\npre-agreed quantity of one or more of agricultural produce, livestock or its\nproduct of contract farming producer as per contract.<\/li>
    9. Contract Farming Facilitation\nGroup (CFFG) being created for promoting contract farming and services at\nvillage\/panchayat at level provided.<\/li>
    10. Accessible and simple dispute\nsettlement mechanism at the lowest level possible is provided for quick\ndisposal of disputes.<\/li><\/ol>\n\n\n\n

      India with its diverse agro climatic zones, can be a competitive producer of a large number of crops.Contract farming offers one possible solution. <\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual introduction. Body. Contract farming benefits. Salient features of Model Contract farming act, 2018. Conclusion. Way forward. Contract farming can be defined as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products.… Continue reading [Answered] \u201cContact farming can solve India\u2019s agricultural and food security issues\u201d. Comment. Discuss Model Contract Farming Act, 2018 in this context.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-50135","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50135"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}