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LATEST NEWS UPDATES | Model contract farming Act to counter price risks: Experts -Madhvi Sally

Model contract farming Act to counter price risks: Experts -Madhvi Sally

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published Published on Jan 4, 2018   modified Modified on Jan 4, 2018
-The Economic Times

New Delhi: The government has come out with a draft model contract farming act, which industry insiders said will protect farmers from price risks and encourage food processing companies to invest more in infrastructure and farming technology once states adopt it.

The agriculture ministry has put up the model act on its website for various stakeholders, including contract farming and value chain promoting companies, producers' organisations and farmers, to submit their comments latest by January 6. Final rules under the act will be framed after considering the feedbacks, and states can adopt them as per their needs.

The draft law follows a Union budget announcement that a contract farming act would be drafted to integrate farmers with agro-industries to ensure better price realisation for their produce as part of an initiative to double the incomes of farmers in the country. Industry insiders have welcomed the model act that seeks to ensure that farmers and buyers abide by pre-agreed price and quantity to protect farmers from post-harvest market unpredictability and bars the transfer of ownership of farmers' land to companies among other things.

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The Economic Times, 3 January, 2018, https://economictimes.indiatimes.com/news/economy/agriculture/model-contract-farming-act-to-counter-price-risks-experts/articleshow/62343170.cms


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