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LATEST NEWS UPDATES | Centre unveils model contract farming law

Centre unveils model contract farming law

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published Published on May 24, 2018   modified Modified on May 24, 2018
-The Economic Times

NEW DELHI: The agriculture ministry on Tuesday released the Model Contract Farming Act, 2018, which lays emphasis on protecting the interests of farmers, considering them as weaker of the two parties entering into a contract. The ministry says that it is a promotional and facilitative Act and not regulatory in its structure.

In addition to contract farming, services contracts all along the value chain, including pre-production, production and post-production, have been included in the Act, a statement from the ministry said. “The final Model Act - State/UT Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2018 has been approved by the Competent Authority,” it says.

Farm minister Radha Mohan Singh released the Act along with Ministers of State for Agriculture Gajendra Singh Shekhawat, Parushottam Rupala and Krishna Raj. The Act says that the contracted produce will be covered under crop/ livestock insurance in operation. Also, contract framing will be outside the ambit of APMC Act.

Protecting farmers, the Act says that no permanent structure can be developed on farmers’ land or premises. “No right, title of interest of the land shall vest in the sponsor. Promotion of Farmer Producer Organization (FPOs) /Farmer Producer Companies (FPCs) to mobilise small and marginal farmers has been provided,” says the Act. The FPO and FPC can be a contracting party if so authorised by the farmers, it says.

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The Economic Times, 23 May, 2018, https://economictimes.indiatimes.com/news/economy/policy/centre-unveils-model-contract-farming-law/articleshow/64282250.cms


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