Commodity Tips, No upper limit to duration’s of contract farming, says panel
Stakeholders in the farming sector have suggested the maximum time limit be done away with
The government is planning to allow companies time flexibility to pool farmers’ land for the long term in accordance with new contract-farming guidelines, currently being drafted by a committee.
This committee is headed by Ashok Dalwai, chief executive officer, National Rainfed Area Authority (NRAA), Union Ministry of Agriculture.
Introduced first in December last year, the model draft guidelines on contract farming, to be incorporated into the State/Union Territory Agricultural Produce and Livestock Contract Farming (Promotion & Facilitation) Act, 2018, have provisions for companies to pool farmers’ land for at least one season and a maximum of five.
Stakeholders in the farming sector have suggested the maximum time limit be done away with.
“We have received recommendations from various stakeholders to remove this periodic limit. In the revised guidelines, to be introduced in March, there will be no mention of limits. We would like corporate to ensure farmers better realization of their produce. The new contract farming guidelines would enable corporate to set prices in advance, i.e. forward contract, and take responsibility for quality, handling, transportation, and marketing of farm produce,” said S K Singh, deputy agricultural marketing adviser and member-secretary of the committee.
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