Committee on Contract Farming to draft a Model Contract Farming Act
Committee on Contract Farming constituted by the Ministry of Agriculture and Farmers’ Welfare on 2017 to draft a Model Contract Farming Act under the Chairmanship of Dr. Ashok Dalwai, Additional Secretary.
What is Contact Farming?
The concept of Contract Farming (CF) refers to a system of farming and marketing in which agro-processing/exporting or trading units enter into a contract with farmers to purchase a specified quantity and quality of one or more agricultural commodities at a pre-agreed price.
The contracting firm / company also provides all production support to the farmers including extension services with full protection of land right to them.
Further, in the absence of any agency of the State for verification of the credentials / track record of the sponsoring companies, there are reported cases of farmers becoming victims of the fly-by-night operators.
Committee on Contract Farming – Terms of Reference
The Committee is committed to formulating a comprehensive, promotional and facilitative model Contract Farming Act, which can address all the constraints in adopting contract farming in a big way.
The approach shall be to promote a win-win situation for both the farmers and the sponsoring company, so that the risks & uncertainties in meeting the obligations of the contract are addressed.
The aim is to let the farmers benefit from a pre-agreed future price for his produce, besides efficiency in resource management and knowledge at production stage. Simultaneously, the sponsoring company should be able to plan for his processing, marketing & exports based on pre-agreed quantity & quality of the contractual price.
The Committee has begun its deliberations & consultations. It is seeking inputs from a cross-section of the society including farmers, trade bodies, industry, academics & experts.
The Committee values highly the inputs from the general public, as it believes ‘out of box’ and non-conventional ideas are necessary to draft a robust & practical law to promote contract farming, and these can come from informed citizens.