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Model Agricultural Produce and Livestock Contract Farming Act, 2018
May 25 , 2018
2250 days
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- The Union Ministry of Agriculture and Famers Welfare has unveiled Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 to ensure better price to farmers.
- It is aimed at reducing farmers’ risks by creating an assured market for their produce at a pre-agreed price while encouraging investment from agribusiness and food processing industries by enhancing productivity and cost efficiency.
- The draft Model Act seeks to create regulatory and policy framework for contract farming and services.
- Based on this draft Act, states legislatures can enact a law on contract farming as agriculture falls under state list of Constitution.
- It is promotional and facilitative Act and not regulatory in its structure. It not only covers contract farming in agriculture crops but also in livestock, dairy and poultry products.
- It establishes Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village or panchayat at level.
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