President Ram Nath Kovind given assent to the Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act.
Tamil Nadu becomes the first State in the country to enact a law on contract farming. President Ram Nath Kovind given assent to the Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act.
The State government said in an official release that the new law would protect the farmers during times of bumper crop or when market prices fluctuate. Farmers would be paid a pre-determined price, which had been arrived at the time of signing agreements with buyers. Such agreements would have to be registered with designated officers from the Department of Agricultural Marketing and Agri Business.
While there is no exclusive legislation regarding contract farming in any state so far at the all-India level, Tamil Nadu government has come up with such a law,” said the release.
Contract Farming and Services Authority
Tamil Nadu state would form a six member’s body known as Contract Farming and Services (Promotion and Facilitation) Authority. The authority will ensure proper implementation of the Act and make suggestions to the State government for promotion and better performance of contract farming.
Farmers could get support from buyers for improving productivity by way of inputs, feed and fodder and technology. Also, farmers engaged in rearing of livestock for scale of economy in production and post-production activities would be covered.
No coverage for banned produce
The release mentioned that any produce, which is banned by the Central or the State government or the Indian Council of Agricultural Research (ICAR), will not be covered under contract farming. Edappadi K. Palaniswami, Chief Minister of Tamil Nadu had given instructions to officers to complete finalization of rules & ensure early execution of the law.
Based on Model Law
Most importantly, the release has mentioned that, the formulation of the Act is based on a model law prepared by Centre, which consulted different stakeholders, including the State governments. The Tamil Nadu government in its budget for 2018-19 had announced that it will come out with one such law. In February 2019, the Assembly adopted the bill.
