New Delhi: State Food Supplies and Consumer Welfare Minister Surya Narayan Patro Tuesday raised issues arising during signing of agreements between industrialists and beneficiaries (farmers) in cases of sharecropping.
The minister was speaking in a consultative meet on the draft of a new contract farming Act.
The meet was chaired by Union Agriculture Minister Radha Mohan Singh and junior ministers besides agricultural marketing ministers from states to approve the draft Model Contract Farming and Services (Promotion and Facilitation) Act, 2018 after holding a threadbare discussion.
Patro told media persons later that the he had highlighted ways to tackle the issues arising from agreements between the industrialists and the beneficiaries.
Sources said that though the new draft Act lacks a regulatory provision between farmers and contracting agency, it has a dispute settlement mechanism.
The draft Act, described as facilitative, has a provision for “accessible and simple dispute settlement mechanism” at the lowest level possible for “quick disposal of disputes.”
The Act will be outside the ambit of the Agricultural Produce Marketing Committee Act and may have farmers-producers organisations as contracting parties, if authorised by farmers.
It will promote farmer-producer companies to mobilise small and marginal farmers.
The draft Act says that no permanent structure will be allowed to be developed on farmers’ land/premises.
In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included.
It has the provision for online registration of sponsor and recording of agreement provided. The “Registering and Agreement Recording Committee” or an “Officer” will be at district/block/taluka level.
The contracted produce is to be covered under crop/livestock insurance in operation.
The Act ensures buying of entire pre-agreed quantity of one or more of agricultural produce, livestock or its product of contract farming producer as per contract.
It also has provision for facilitation of Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village / panchayat level.
The government had set up a committee chaired by chief executive officer (CEO) of National Rainfed Area Authority Ashok Dalwai with Advisor Niti Aayog Ramesh Chand and principal secretaries and in-charges of agricultural marketing of Maharashtra, Karnataka, Odisha, Punjab and Madhya Pradesh as members.
Contract farming is already under way in some states such as Maharashtra, Haryana, Karnataka and Madhya Pradesh.