The government has formulated a progressive and facilitative Model Act “The —-State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” in May, 2018 for its adoption by the states/Union Territories (UTs). The Model Contract Farming Act covers the entire value and supply chain from pre-production to post harvest marketing including services contract for the agricultural produce and livestock. The act is presently under consideration of the state governments.
Model Act being a facilitative one with wider scope of contracts in the entire agri-value chain starting from pre-production, production to post-production, private players including Farmer Producer Organizations (FPOs) will be encouraged to engage themselves in the contract farming and services contracts under the Act. The contract farming under this model, will help in mitigating the price risk and market uncertainties through advance agreements and would encourage entry of private players into the farm sector.