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LATEST NEWS UPDATES | Bengal on farming tightrope by Biswajit Roy

Bengal on farming tightrope by Biswajit Roy

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published Published on Jun 2, 2011   modified Modified on Jun 2, 2011

The Mamata Banerjee government is likely to request the Centre to amend a legislation to make contract farming “optional”, an approach that leaves some room for manoeuvre and mirrors the concerns expressed by sections of the Left on agro-marketing reforms.

Arup Ray, the new minister for agricultural marketing in Bengal, today told The Telegraph that the Trinamul-led government would neither promote contract farming nor allow big players to control the agro-marketing sector, particularly retail.

He said the Bengal government planned to ask the Centre to amend the Central Model Act, a set of legislative recommendations for states to open agro-marketing to the private sector and promote farming based on contracts between farmers and marketing and processing companies.

Bengal is one of the states that have not implemented the model act so far.

According to this act, contract farming is an “agreement” between processing/ marketing farms, market intermediaries and farmers for production and support of agricultural products under “forward agreement, frequently at (a) predetermined price”.

“We think contract farming will harm the interests of farmers, particularly small cultivators. Preferring co-operative farming, we are likely to ask the Centre to amend the model act and make contract and co-operative farming optional for farmers. This would help us consider implementation of the central act to replace the existing state law,” Roy said.

The state law, the Agricultural Produce Marketing Committee Act, largely controls marketing of farm produce in the state.

Roy added that the new government would seek “public opinion” on the pros and cons of the model act and interact with all stakeholders, including farmer bodies.

Former chief minister Buddhadeb Bhattacharjee had tried to introduce contract farming in a limited way and allowed Frito-Lay, a PepsiCo subsidiary, to enter into contract farming with potato growers.

But he had to roll back his move after the Forward Bloc, CPI and the RSP as well as a section of CPM peasant leaders opposed contract farming.

“The chief minister will finalise our policy after consulting experts and stakeholders. But I don’t think the government of Ma Mati Manush will allow corporate groups to control the farm-product market, particularly in retail,’’ Roy said.

The government is yet to decide its approach to companies like Metro Cash and Carry, he said.

Roy, however, welcomed FDI and domestic investment in farm-produce processing and preservation. Some investors, including the UK-based Bridgemount group, have expressed interest in investing in these sectors, Roy said.

The Telegraph, 2 June, 2011, http://www.telegraphindia.com/1110602/jsp/nation/story_14060964.jsp


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