Since agriculture is a state subject, each state has its own provisions regarding agricultural produce and conditions with respect to contract farming further, specific provisions with regard to contract farming have been enshrined only by few states. Contract farming has been used for agricultural production for decades but its popularity appears to have been increasing in recent years the use of contracts has become attractive to many farmers because the arrangement can offer both an assured market and access to production support.
Contract farming arrangements are often criticized for being biased in favor of firms or large farmers, while exploiting the poor bargaining power of farmers small in such situations, a viable approach seems to be to form clusters of small farmers that can create a scale effect and.
1 seminar on sustainable contract farming for increased competitiveness july 18-22, 2005, sri lanka farm-firm linkages through contract farming in india. Contract farming works informally in the indian economy although it benefits farmers by providing assured market transactions for an acceptable quality of produce, the lack of a written contract. Insights weekly essay challenges 2018 – week 32: age of big data: data is the new oil, history is its oldest bank insights weekly essay challenges 2018 – week 31: strong institutions and fair procedures, not personalities constitute the fundamentals of good governance.
Centre to come out with draft model law on contract farming download the times of india news app for latest india news read comments post a comment all comments () . At present, there is no uniform law in india for contract farming since agriculture is a state subject, each state has its own provisions regarding agricultural produce and conditions with respect to contract farming further, specific provisions with regard to contract farming have been enshrined only by few states. Contract farming can work if there is a collectivisation of small farmers for instance, 10 to 15 farmers get together, form a group, and sign a group contract it brings down the transaction costs, the farmers are better protected, and it is essentially a win-win situation for both the farmer and the corporate.
Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver at a future date. Contract farming is a system which refers to production and supply of agricultural produce under a forward contract it is a commitment to provide an agricultural product at a fixed price, time and required quantity to a known buyer. Contract farming ventures in india: a few successful cases the government of india’s national agriculture policy envisages that “private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer.
2 the govt of india runs the largest contract farming model the “green revolution” was a resounding success improved varieties & hybrids assured availability of inputs. 7) what do you understand by contract farming does india need model law on contract farming what should be its features analyse by insights february 4, 2017.
Need for contract farming in india (contd) amendment of agriculture produce marketing act (apmc) and its adoption in 10 states in india the liberalized marketing system coming up in india closing down of marketing boards changes in consumption habits contract farming in india.