Union Agriculture Minister Radha Mohan Singh released the final Model Act titled "Agricultural Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018" & appealed to states to enact such law. The Model Law talks about ensuring buying of pre-agreed quantity of the agriculture produce. The main motive behind drafting the Model Contract Farming Act is to integrate farmers with bulk purchasers for better price realization.
Provisions of Model Contract Farming Act, 2018 :-
- The Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.
- Besides including contract farming, the model act also incorporates the services contracts along the value chain including pre-production, production and post-production.
- A ‘Registering and Agreement Recording Committee’ or an ‘Officer’ will be available at district or taluka level for online registration of sponsor and recording of agreement.
- The contracted produce will be covered under the crop or the livestock insurance in operation.
- No permanent structure can be developed on farmers’ land or premises.
- The contract farming sponsor will have no right or title ownership on the land.
- The act provides for the promotion of Farmer Producer Organisation (FPOs) / Farmer Producer Companies (FPCs) to mobilise small and marginal farmers.
- FPO/FPC can be a contracting party, if authorised by the farmers.
- The act will ensure that the buyers buy the entire pre-agreed quantity of one or more of agricultural produce, livestock as per the contract.
- Contract Farming Facilitation Group (CFFG) will be created for promoting contract farming and services at village and panchayat level.
- For quick disposal of disputes, accessible and simple dispute settlement mechanism at the lowest level will be provided
- It is a promotional and facilitative Act and not regulatory in its structure.
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