Model Contract Farming Act 2018 in Hindi

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Understanding the Model Contract Farming Act 2018

The agriculture sector in India is one of the most important contributors to the country`s economy. However, it has seen various challenges in recent years due to the changing climatic conditions and the lack of modernization in farming practices. To address these challenges, the government of India introduced the Model Contract Farming Act in 2018, which aims to promote contract farming and provide a legal framework for the same.

What is contract farming?

Contract farming is a system in which farmers enter into a contract with agribusiness firms, processors, exporters, or retailers for the production and supply of agricultural products. The contract outlines the terms and conditions of the agreement, including pricing, quality, delivery, and quantity. The objective of contract farming is to provide a reliable market for farmers, increase their income and productivity, and ensure that the end-consumers get high-quality produce.

What is the Model Contract Farming Act 2018?

The Model Contract Farming Act 2018 is a model legislation prepared by the government of India to provide a legal framework for contract farming in the country. The Act aims to regulate the contract farming agreements and protect the interests of farmers and other parties involved. The Act has been prepared based on the recommendations of the National Institution for Transforming India (NITI) Aayog, which is a policy think tank of the Indian government.

Key features of the Act:

1. Definition of contract farming: The Act defines contract farming as a production and marketing agreement between a farmer and a sponsor, which includes a pre-agreed price for the produce and other terms and conditions.

2. Registration of contract farming agreements: The Act makes it mandatory for all contract farming agreements to be registered with a designated authority. The registration process includes the verification of the parties involved, the terms and conditions of the agreement, and the quality standards to be followed.

3. Rights and obligations of farmers: The Act provides for the protection of the rights of farmers and ensures that they are not exploited by the sponsors. It prohibits the sponsor from acquiring any rights over the farmer`s land, and ensures that the farmer`s produce is purchased at the pre-agreed price.

4. Dispute resolution mechanism: The Act provides for a dispute resolution mechanism for resolving disputes arising out of contract farming agreements. It establishes a conciliation board and an appellate authority to handle such disputes.

Conclusion:

The Model Contract Farming Act 2018 is a significant step towards promoting contract farming in India. It provides a legal framework for contract farming agreements, which will ensure that the farmers are not exploited and the end-consumers get high-quality produce. The Act is expected to bring in more private investment in the agriculture sector and improve the income and productivity of farmers.