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Four Indian states start work on 'Contract Farming Act'

The act covers the entire value and supply chain from pre-production to post-harvest marketing stages, besides covering services contract for agricultural produce and livestock.


PTI Last Updated at 03 Aug 2018, 15:08 IST India
Four Indian states start work on 'Contract Farming Act'
  • Minister of State for Agriculture Gajendra Singh Shekhawat said 21 states have implemented the previous contract farming act in the country and work was being carried out in some states. (Image Credit: Twitter)

The government today said that only four states -Tamil Nadu, Uttar Pradesh, Odisha, and Karnataka -- have started work on the new Contract Farming Act that was sent to states on May 22 this year.

Minister of State for Agriculture Gajendra Singh Shekhawat said 21 states have implemented the previous contract farming act in the country and work was being carried out in some states.

Replying to supplementaries during the Question Hour in the Rajya Sabha, the minister said the provisions of the new model Contract Farming Act have been changed in such a way that interests of farmers are taken care of.

He said the earlier contracts under the old act were framed in such a way that was inclined in favor of agencies. However, under the new act, a robust mechanism has also been included to help settle disputes within a specific time- frame.

"The new act has only been implemented three months ago and work has stated in states of Tamil Nadu, Uttar Pradesh, Odisha, and Karnataka, but no details of the work started are yet available.

"The earlier contract farming act...work is continuing in various states including Andhra Pradesh and Madhya Pradesh, where Work on contract farming on herbs is carrying on in various states like Andhra Pradesh and Madhya Pradesh, he told members.

In a written reply, Agriculture Minister Radha Mohan Singh said in order to develop a direct marketing link between farmers and contract farming sponsors (processors, organised retailers, and exporters) and also to mitigate price risk and market uncertainties, the government has formulated a progressive and facilitative model act by name of "Agricultural produce and livestock contract farming and services (promotion and facilitation) Act, 2018.

The act covers the entire value and supply chain from pre-production to post-harvest marketing stages, besides covering services contract for agricultural produce and livestock.

"The model act aims at mitigating price risks and market uncertainties for contracting parties and help develop marketing links that are necessary for raising the efficiency of agriculture," he said in his written reply.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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