To ensure better price to farmers and reducing farmers’ risks by creating assured market for their produce at pre-agreed price The Union Ministry of Agriculture and Famers Welfare has unveiled Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018.
Salient features of Model Contract Farming Act, 2018 include, the Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract. In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included. Contracted produce is to be covered under crop and livestock insurance in operation. Contract framing to be outside the ambit of APMC Act and no permanent structure can be developed on farmers’ land/premises. No right, title of interest of the land shall vest in the sponsor.